What is the most efficient way to pay off my mortgage?

DonC

Currently if I overpay I'll be subject to early repayment charges.

My current mortgage ends at the end of August.
Will I still be have fees to pay if I pay when my current mortgage expires?

Any suggestions \ links to info would be helpful.

Mark_d

If your mortgage ends in August then your outstanding balance must be fairly small and not costing much in interest.  Why not just wait and be mortgage free in August?

bluelad1927

Is your mortgage being paid off in August or is it the end of a fixed rate .

As above if it is ending then the interest is likely to be minimal. There is normal a mortgage exit fee when it is paid off. It probably varies by lender but I know mine is £85

DonC

Mark_d said:

If your mortgage ends in August then your outstanding balance must be fairly small and not costing much in interest.  Why not just wait and be mortgage free in August?

My current mortgage ends at the end of August. I will still have several thousands to pay off.

Im asking when I'll incur the lowest repayment charges.
Am I able to pay it all off when the mortgage ends and not incur fees?

Or will I have to remortgage and have to pay early repayment charges then?
If thats the case, I'll pay it off now and suck up the early repayment charges on my current mortgage.

DonC

bluelad1927 said:

Is your mortgage being paid off in August or is it the end of a fixed rate .

As above if it is ending then the interest is likely to be minimal. There is normal a mortgage exit fee when it is paid off. It probably varies by lender but I know mine is £85

You're right, my phrasing is off, The fixed rate is ending at the end of August.

I know there is a percentage I'll have to pay if I over pay (not sure how much)
Does that overpayment fee still need to be paid if I pay when the mortgage ends?

GrumpyDil

Whilst you are in a fixed deal there will be early repayment charges if you pay off more than you are allowed to under the deal (mine allows a 10% overpayment by year).

Once the deal has ended you can pay the full amount off with no early repayment charge. 

If you enter into a new deal it is very likely that there would be a early repayment charge.

So if you are intending to clear the mortgage I would not enter into any new deal and would pay off the balance as soon as possible. 

Zerforax

If you can't pay off the full amount but want to make a bigger overpayment amount, it can be done between the old deal expiring and the new deal starting. The new mortgage bank will appoint solicitors for the remortgage (if changing lender) and the solicitors will see that there is a difference between current mortgage total and new amount you want to borrow so then you transfer the difference to them and they will apply it. That way you don't have to pay an early repayment charge.