Paying off my Mortgage.

sheba223

Hi,
I would be grateful for any suggestions regarding my subject. I am nearly at the end of my mortgage fixed rate term. I plan to use my accumulated savings and pay a lump sum off my mortgage. After I do this I will be left with approximately £14,000 to pay. Because it is not a huge amount in mortgage terms I was wondering what method I should use to pay the remainder. Thank you.

UK007BullDog

£14K is not a lot so to remortgage to another lender might not be an option as most have a minimum of at least £25K.

A couple might do it though. But dont throw good money after them to pay for a rate.

Dont use credit cards!!!!!

A personal loan might also be an option if you can get one with a rate at around 5.5% to 6%. If not then get a mortgage for another 3 years. I think most lenders have a min term of 3 years.

If you can overpay a lot get a SVR with existing lender and plow all of your money into it and depending on the amount you could pay it off in 1 to 3 years?

Only you know your budget, income and outgoings. Do the maths (been saying this a lot lately).

And congrats to nearly being debt free. Also check out the Mortgage free wannabe board. They have lots of tips and ideas there too.

sheba223

Thanks very much for your advice. Much obliged!

maryjane01

You could borrow £25,000 with a deal that has unlimited overpayments. Take out your mortgage first and then as soon as it is all set up make the lump sum payments you wanted to make.

You will need to read the fine print of the deals relating to overpayments and early repayment charges, also as you owe so little you probably want to go with a fees free deal, or very limited fees.

sarkin

Just stay where you are and ask the lender if they have any fee free deals. If you are on repayment mortgage you will mainly be paying capital now anyway