Mortgage Repayments

[niallkelly14]

Hi

just a couple of quick queries that i would like clarified. Say we have a mortgage for 250k over 30 years on variable rate and pay it off as per usual over the next 5 years repaying say 30k of the capital amount and 50k in interest.

if at the end of year 5 we then had 220k cash available and paid all this in would this clear the mortgage in full with no further interest to be paid

i know that if this was a fixed mrtgage, there are penalties for early payment of a fixed rate loan. can anyone provide an estimate of how much these penalties are, i know these prob vary from bank to bank but a general overview would be much appreciated

 

[oysterman]

if at the end of year 5 we then had 220k cash available and paid all this in would this clear the mortgage in full with no further interest to be paid

Yes.

i know that if this was a fixed mrtgage, there are penalties for early payment of a fixed rate loan. can anyone provide an estimate of how much these penalties are, i know these prob vary from bank to bank but a general overview would be much appreciated

Not possible - it would depend on the fixed rate, the time remaining on the fix and the variable rate then being offered by the provider....it will always be quite clear on the contract.