Penalty for paying off fixed rate

U

unknown

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Hi all

Can anyone tell me how the penalty is calculated on paying off a fixed rate mortgage? i have 3 years left on fixed rate and may be in a position to pay it off soon. Im with permernant TSB.

I know i should look at the pros and cons of not paying it off and investing instead but i would rather not have the mortgage over my head at the moment.

thanks in advance
 
Go Into the branch and inform them that you may be in a position to pay off the mortgage early if there is no penalty. They will probably take the hand off you trying to get the money. I think that bank were giving 10% discount recently for paying off mortgages early.
 
Excellent i was thinking they would jump at the money all right,

Thanks
 
Also telephone the mortgage department and ask what is the penalty. They should be able to give you a rough idea of the figure. You could always check your mortgage terms and conditions. You really ought to do the sums on whether putting the money on deposit would work out better than paying off the mortgage.
 
Go Into the branch and inform them that you may be in a position to pay off the mortgage early if there is no penalty. They will probably take the hand off you trying to get the money. I think that bank were giving 10% discount recently for paying off mortgages early.

The 10% discount was only for tracker mortgage holders I think.

They calculate the penalty for breaking a fixed rate by reference to the fixed rate they are offering now for the remainder of the fixed term. I seem to remember a thread on here a while back so a search should bring up details of the calculation they use.

Before you decide whether to break your fixed rate make sure you're not due to go on to a cheap tracker when the fixed period ends, it would appear a number of people were caught out on this in the last few years.
 
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