Redeeming my mortgage?

keepon

Frequent Poster
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92
Having been in an interest-only arrangement on my (still large) home mortgage with my bank for some time, I now have access to a lump sum that would enable me to redeem it in full. Happy days.

Should I just go ahead and do so, or should I ask them to propose a lower redemption figure on the basis that they will be happy to see me go?

Although paying off in full and walking away makes obvious sense in the short term, the wider frame is that I am not far off retirement and our pension largely has been wiped out via various shenanigans, so that apart from the house we will otherwise be in trouble.

Any advice or pointers appreciated.
 

tallpaul

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1,039
The idea of getting a lower redemption amount to get rid of customers is a myth. Ask yourself: why would a bank take less money from a customer who they know has a track record of properly servicing their loan?

Otherwise there are loads of threads on AAM on the pros and cons of redeeming early.
 

keepon

Frequent Poster
Messages
92
why would a bank take less money from a customer who they know has a track record of properly servicing their loan?
Why might they be happy to see you go.
Perhaps because they would prefer not to be exposed to a near-retirement mortgagee approaching the conclusion of an interest-only period and facing a steep rise in repayments?
 

tallpaul

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1,039
Perhaps because they would prefer not to be exposed to a near-retirement mortgagee approaching the conclusion of an interest-only period and facing a steep rise in repayments?
In fairness though, isn't this more an issue for you than them?
 
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