Can I clear mortgage in 4 months?

[CorkHombre]

I have approval for a Tracker mortgage of 400K ... I have drawn down 40K of this to pay the deposit about 4 months ago. The house should be ready in about a month so I will need to draw down the rest then ... I was wondering if I can pay back the 40K and get the mortgage from another lender who is offering a better deal now. Are there any penalties for this?

 

[irishlinks]

Have you asked the lender?
Is it not in the mortgage agreement you signed?

If the penalty isn't too bad and it's worthwhile changing - the current lender might offer you a better rate to stay.
How much better is the other rate?

 

[asdfg]

Don't see why not?
Are you getting another tracker rate? Have you approached the current mortgage provider, they may match the rate. Is your new rate based on the most recent rates available, the current provider may have upped their rates and the new provider may not when you got the quote.
Be aware of discounts for New Business keep at eye out for the APR.

Post crossed with Irishlinks

 

[liteweight]

Any penalties will be in your mortgage agreement. Will you also incur extra legal and valuation costs? Crunch some numbers to see if the new rate still looks good when the above are taken into account.