Should I pay off the mortgage?

trickrick

My wife and I have come in to some inheritance, which, if used in its entirety would pay off the mortgage and release significant amount of money each month that we've never been close to having the pleasure of. However early payment of the mortgage would incur and £5000 which sticks in the throat somewhat. Someone told me it might be financially better to use the added inheritance funds to pay more off a month bit surely that would incur a cost also? If not is there a benefit in this option that I don't see?  Apologies if these seems a daft post in advance!

caeler

Check the early repayment and over payment terms of your mortgage then you can decide how to approach.

dimbo61

You need to read the terms and conditions of your current mortgage deal.
If in a fixed deal most lenders allow 10% Overpayment each year.
Check if this is a calender year ! So 10% in November and another 10% In January 2021.
When does the fix run out ?
Can you pay into regular savers each month.
Can you pay extra into your pensions and get extra employer contributions ?
Tax relief at 20/40% on top.

Thrugelmir

Overpaying the mortgage within permitted limits is a way of reducing the ERC.  What are the early redemption terms?