snakehips 0 Posted January 31, 2008 Share Posted January 31, 2008 Do any of youzzzzz know if there is a penalty price if one pays off a mortgage early? Link to comment Share on other sites More sharing options...
JawD 41 Posted January 31, 2008 Share Posted January 31, 2008 Usually, but depends on the mortgage. Some come with no penalties etc. If you are re-mortgaging with the same provider then you are usually fine iirc. Easiest thing is to ring the provider, say you are thinking of moving house and want to know if there are any penalties on whatever you are on now so you can factor it in. Or, dig out your old agreement letter. Link to comment Share on other sites More sharing options...
snakehips 0 Posted January 31, 2008 Author Share Posted January 31, 2008 Usually, but depends on the mortgage. Some come with no penalties etc. If you are re-mortgaging with the same provider then you are usually fine iirc. Easiest thing is to ring the provider, say you are thinking of moving house and want to know if there are any penalties on whatever you are on now so you can factor it in. Or, dig out your old agreement letter. Cheers. Digging out the old letter would prove difficult. I reckon ringing Northern Rock would be the best bet. I got a mortgage statement today (must admit I can't recall seeing one of these before) which got me thinking I may be in a position to pay off my mortgage in a year, or so. But if there's a penalty payment I would have to think again! Unless, of course, NR were letting me know how much they will be writing off when they go under Link to comment Share on other sites More sharing options...
JawD 41 Posted January 31, 2008 Share Posted January 31, 2008 Ah, if its NR, then you'll prob get a penalty of a few million Link to comment Share on other sites More sharing options...
snakehips 0 Posted January 31, 2008 Author Share Posted January 31, 2008 Ah, if its NR, then you'll prob get a penalty of a few million Knowing my luck, you're probably right! And probably further 'increases' once Virgin take over Link to comment Share on other sites More sharing options...
trophyshy 6492 Posted January 31, 2008 Share Posted January 31, 2008 mine is 1.5% but that was on a no fee tracker. 1% is common I think? Link to comment Share on other sites More sharing options...
Craig 6342 Posted January 31, 2008 Share Posted January 31, 2008 penalty redemption fees usually only apply if you have a fixed-rate mortgage and you want to redeem it within the fixed-rate period (and even then its generally only if you want to change lenders - starting a new mortgage for another property with the same lender seems to be ok). Does depend on who you're borrowing from though. I had a redemption penalty of 6 months interest during the fixed-rate period on mine. Link to comment Share on other sites More sharing options...
Jill 0 Posted January 31, 2008 Share Posted January 31, 2008 Northern Rock have an early repayment charge (seen instances where it's in the region of £5k). They will waive it though if you remortgage with them. Not sure about other lenders though. Link to comment Share on other sites More sharing options...
snakehips 0 Posted January 31, 2008 Author Share Posted January 31, 2008 Thanks folks. I was planning on finishing the thing once and for all and have no desire for another mortgage. Trying to convince mrs hips to release a few £££'s from our savings could prove difficult though. Link to comment Share on other sites More sharing options...
Meenzer 14168 Posted January 31, 2008 Share Posted January 31, 2008 If you can get it paid off before the economic shit hits the fan (so to speak), I would - far better to have a few quid less in a savings account but a guaranteed roof over your head once the banks start to struggle. Link to comment Share on other sites More sharing options...
snakehips 0 Posted January 31, 2008 Author Share Posted January 31, 2008 If you can get it paid off before the economic shit hits the fan (so to speak), I would - far better to have a few quid less in a savings account but a guaranteed roof over your head once the banks start to struggle. I have to say that that was something I was thinking about. It would be a bit of a struggle to clear it off this year, but by the middle of next year things would be a lot easier. Hmmmm, unless I get some anti-freeze in. Link to comment Share on other sites More sharing options...
jonpneumonic 0 Posted January 31, 2008 Share Posted January 31, 2008 Just give NR a call and ask for a redemption statement (check there is no charge for this first). That will legally have to detail any balance outstanding + any charges or penalties. NR do charge an exit fee of about £225 for any mortgage account closure, but the penalty (will be shown as Early Repayment Charge) is entirely dependent on your mortgage deal. They do tend to be buggers for fees though, always have been. BTW if a penalty exists, all lenders will charge it whether you stay with them or go elsewhere. /climbs down off dull mortgage advisor soapbox Link to comment Share on other sites More sharing options...
snakehips 0 Posted January 31, 2008 Author Share Posted January 31, 2008 Just give NR a call and ask for a redemption statement (check there is no charge for this first). That will legally have to detail any balance outstanding + any charges or penalties. NR do charge an exit fee of about £225 for any mortgage account closure, but the penalty (will be shown as Early Repayment Charge) is entirely dependent on your mortgage deal. They do tend to be buggers for fees though, always have been. BTW if a penalty exists, all lenders will charge it whether you stay with them or go elsewhere. /climbs down off dull mortgage advisor soapbox Thanks jon Welcome to the board btw. Stick around. Link to comment Share on other sites More sharing options...
Jill 0 Posted January 31, 2008 Share Posted January 31, 2008 Just give NR a call and ask for a redemption statement (check there is no charge for this first). That will legally have to detail any balance outstanding + any charges or penalties. NR do charge an exit fee of about £225 for any mortgage account closure, but the penalty (will be shown as Early Repayment Charge) is entirely dependent on your mortgage deal. They do tend to be buggers for fees though, always have been. BTW if a penalty exists, all lenders will charge it whether you stay with them or go elsewhere. /climbs down off dull mortgage advisor soapbox I was going to go into this much detail and decided against it. PS. If you don't pay the ERC Northern Rock have been known to instruct me to recover it. So it's in your best interests to pay. Link to comment Share on other sites More sharing options...
trophyshy 6492 Posted February 1, 2008 Share Posted February 1, 2008 broader wisdom suggests never pay it off in full. cheapest loan you can get....even if you keep £500 in debt - you can borrow more if you want to slap a conservatory on or whatever. once paid off to get an additional loan will cost you more....but paying the interest on £500, feck all and you have a relatively simple means to ££ if ever needed.....Martins money site has stuff on this.. http://www.moneysavingexpert.com/mortgages...ages-vs-savings Link to comment Share on other sites More sharing options...
snakehips 0 Posted February 1, 2008 Author Share Posted February 1, 2008 broader wisdom suggests never pay it off in full. cheapest loan you can get....even if you keep £500 in debt - you can borrow more if you want to slap a conservatory on or whatever. once paid off to get an additional loan will cost you more....but paying the interest on £500, feck all and you have a relatively simple means to ££ if ever needed.....Martins money site has stuff on this.. http://www.moneysavingexpert.com/mortgages...ages-vs-savings Thanks t/s. I had heard that it was best to keep a small mortgage, incase of need of benifits at such time, but wasn't sure. The need for a loan on top of a mortgage is worth thinking about. I'll check this geezer out sometime (I have heard of him many times and he is a great believer in everyone claiming money back from banks). Link to comment Share on other sites More sharing options...
Tooj 17 Posted February 1, 2008 Share Posted February 1, 2008 What's a mortgage? Link to comment Share on other sites More sharing options...
snakehips 0 Posted February 1, 2008 Author Share Posted February 1, 2008 What's a mortgage? Like a millstone round your neck for twenty-odd years - but far, far, bigger You don't want one, J - just live in a static caravan Link to comment Share on other sites More sharing options...
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