Knowing when to repay

LittleLostOne

About three months ago I bought my new house. I ported over my previous mortgage, about £46k, as I was still in a good fixed interest rate period (about 2 years to go) and borrowed an additional amount £26k, on top on another fixed rate (5 years) mortgage.

 

Due to a recent bereavement in the family I will end up with enough money to pay off the mortgage, leaving me with no debts, and keep back a decent amount for savings. However, because they are fixed rates, I will have to pay a penalty if I clear them early. How do I go about working out of I will pay more in interest than as a penalty, and what the option is that will leave me better off?

pramsay13

Any early repayment penalties will be outlined in your mortgage agreement letter, along with interest payable during the course of the fixed term.
If you don't have those details you can ask your mortgage provider.
It's impossible for us to give a more detailed answer without more details from you.

dimbo61

Most fixed rate mortgage deals allow 10% overpayment each year so why not start with that.
Once you know the interest rate on both parts of the mortgage and erc,s post back on here

getmore4less

if you provide the details, amount, rate, full term, deal term, payment, ERC schedule inc ERC free overpayment limits of the 2 deals with actual dates not just year and month  someone can knock up a set of calculations.