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Early Redemption Advice Required Please
philb66
Posts: 3 Newbie
Hi
I am trying to work out if its financially beneficial to pay off my mortgage now or when the early repayment charge expires on 30/09/21.
Current redemption figure is £88176.54 (this includes £1723.82 ERC and £199.00 Mortgage exit fee)
So current mortgage balance without the penalties is £86253.72
It is a repayment mortgage fixed for 5yrs at 2.65% taken out in Dec 2016. I made capital overpayments last year and this year so I am maxed out on that but I have kept the monthly payments of £629.13 the same even though payments could have reduced to £508.58 from January 2021.
I have tried to do the maths but I'm not confident in my findings as its not my forte.
Could anyone help me work out if its better to redeem with penalties now or continue making monthly payments (with interest) until the end of Sept this year and redeem penalty free?
Many thanks
I am trying to work out if its financially beneficial to pay off my mortgage now or when the early repayment charge expires on 30/09/21.
Current redemption figure is £88176.54 (this includes £1723.82 ERC and £199.00 Mortgage exit fee)
So current mortgage balance without the penalties is £86253.72
It is a repayment mortgage fixed for 5yrs at 2.65% taken out in Dec 2016. I made capital overpayments last year and this year so I am maxed out on that but I have kept the monthly payments of £629.13 the same even though payments could have reduced to £508.58 from January 2021.
I have tried to do the maths but I'm not confident in my findings as its not my forte.
Could anyone help me work out if its better to redeem with penalties now or continue making monthly payments (with interest) until the end of Sept this year and redeem penalty free?
Many thanks
0
Comments
-
It will be cheaper if you wait until September and then pay it off, you will pay around £1300 in interest.
1 -
Redeem penalty free. If you have any spare money overpay the mortgage if you can.1
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