Best way to become mortgage free?

Morning all.
With mortgage rates skyrocketing at the moment I'm looking for advice on my current situation. My current mortgage term runs out in August..I have saved up enough these last five years to be able to pay it off now however I know I'll enquire fees as I still have a large chunk to pay. 
My question is, it it better for me to pay off the 50kish in a lump sum at the end of these term and just accept the early repayment fees or is it better to get a new term with these new ludicrous rates and pay an extra 10 percent each year to avoid additional fees until it's paid off? 
Thanks in advance .


  • Moneyminded
    Hi there, 

    If you allow your current fixed-rate deal to run out in August and then pay off the mortgage you shouldn't incur any fees. The early repayment charges typically only apply during any fixed term so as soon as that expires you will drop onto your lender's standard variable rate where fees shouldn't apply. Double-check this with your lender and ensure you know when your current deal ends. 

    Assuming you have an emergency fund in place aside from the money to pay off the mortgage I would probably be tempted just to pay it off and have the peace of mind of owning the house entirely. 

    Depending on your financial situation and stage in life you may want to consider if you would be better off investing your money or putting it towards a pension if you don't have that covered already. 

    Good luck
    • Original mortgage end date: March 2041
    • Current mortgage end date: Dec 2032 (aiming for October 2025)
    • MFW 2024 #15 £446.24/ £2500 /// MFW 2023 #15 £8,617.84/ £10,000 /// 2022 #15 £7,315.24/ £7250 /// MFW 2021 #15 £8,530.07/ £8500
    • Daily interest is currently £4.44
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