Paying mortgage off in one hit

Bunnji1

Hi, 

I have just had a redemption figure of £41k on my mortgage that includes a early repayment clause, circa £800. I was just wondering if there is a preferable day to pay it off, ie the normal payment day.
  TIA

user1977

Doubt it. However they calculate the interest, the earlier you pay it off, the less you'll pay. 

MWT

unless the ERC goes away in the near future there is usually nothing to gain by waiting.

simon_or

Bunnji1 said:

Hi, 

I have just had a redemption figure of £41k on my mortgage that includes a early repayment clause, circa £800. I was just wondering if there is a preferable day to pay it off, ie the normal payment day.
  TIA

What is the rate on the mortgage and how long before the ERC runs out?

If you're on a low rate and can access a savings account that will pay the same/more (after tax if applicable) then it may be worth parking the funds in there to save the £800 ERC.

You can get 1.55% easy access, 2% for six months, 2.83% for 1 year and 3.12% for 2 years.