I am hoping to switch to a different mortgage company soon. I have some spare cash so I want to prepay some of my mortgage before I switch so as to bring down the LTV. But I've asked both companies about prepayments (FA & BOSi) and they both seem to say that I can only either reduce the term life of my mortgage or the lump sum that I prepay will reduce my monthly payments. Does that mean I can't just take a whack of the mortgage?
Lump sum prepayment
- Thread starter kittyjo
- Start date
What do you mean?
With a lump sum repayment you have two options in relation to the remanining balance;
1. Keep your monthly repayments as the same level to reduce the term
2. Keep the term to the original length but have lower payments.
Either way you take a 'whack' out of the mortgage!
Sarah
www.rea.ie
1. Keep your monthly repayments as the same level to reduce the term
2. Keep the term to the original length but have lower payments.
Either way you take a 'whack' out of the mortgage!
Sarah
www.rea.ie