Paying off Mortgage

kassy64

Hi, my mortgage is currently on a fixed rate of 1.04% until 31st January 2024 (so about 5 months away) I believe. I intend to pay off the mortgage in full once I'm free of any early repayment charge. Anyone know when I will be able to pay it off without any ERC - do I have to wait until the actual date it expires or do banks allow you to pay it off in the few weeks/months leading up to the expiry of the deal. Mortgage is with HSBC btw.

MWT

Safest approach is to pay it off the day after it expires, and not a minute earlier.

Do not try to send payments in advance to be applied later, that has bitten a few people over the years.

If there are alternatives specific to HSBC, I am sure someone will jump in with the details...

Edi81

1st of February 2024
send the payment over on that day - it’s a Thursday. 

Andreg

If you want to pay the mortgage off in full you will need to ask the bank to tell you exactly how much that will cost, including accrued interest and any fees that may apply.  In due course, December say, you should let the bank know your intention is to repay the mortgage in full on 1 Feb and ask them for instructions on how to do it.

lemondrops69

I paid mine off a couple of years early and I called the bank for a settlement figure that included how much was out standing, the fee to close the mortgage (??? If they hadn't had enough out of me) and accrued interest. The figure was for that day only and if I delayed they said how much extra a day needed to be paid. The settlement figure was valid for 1 week. I had a tracker so no ERC, but maybe call them and ask how early you can pay it off and not pay the ERC?

kassy64

Thanks for all the replies. I have redeemed a mortgage with HSBC previously, just a phone call and they calculate balance for that day and ask for approval to move money across from another a/c to clear the balance. My question was more to do with whether there is a lead up period to the end of the fixed deal whereby any ERC is written off, such as you usually get with utilities etc. HSBC have contacted me already and stated I am free to move to another product if I wish without any penalty, does that imply that they will waive the ERC if I pay it off completely?
I know I could just make a phone call but wondered if anyone had come across similar previously. Online banking will give me a daily redemption quote which currently still shows a ERC of  £130 odd, reducing by 80p per day thereafter.
I suppose I could just pay the £130 now but mortgage is only1.04% presently whereas savings are getting me 5% so reckon better off keeping it there until mortgage deal runs out.