Paying off yer mortgage.

[mad lon]

If you wanted to pay off yer mortgage in a lump sum,what would be the best time of year to do it.(once read that the time of year matters but I don't remember why)?

All silly replies accepted with the usual enthusiasm.

Any building society operatives out there

Not that I can quite pay it off just yet but am hoping for a spot of good luck on the old gee gee's

[Major Stare]

I wouldnt have thought it would have made much difference when you paid it off. Have you tried a mortgage advisor?

Call you mortgage lender and ask for a settlement.

I may be in the same position to clear my mortgage in the new year.  I'll be interested to see any replies.

[dasamdy]

your lender and a good financial advisor are your first points of contact, there are some on here

[Renmure]

Most mortgages these days have the interest calculated on a daily basis so the best time to pay it off is asap. If your mortgage has the interest calculated annually then you would be best to shift it to one that calculates it daily asap whilst you save the lump sum to pay off the whole lot. No doubt someone will have a far funnier relpy tho  

Jim (not a mortgage advisor but a typical Scotsman!!  

[Triggsy]

Follow this link.

Money Saving Expert

Superb site run by Martin Lewis who is well know in the financial world.

[Vinny's Westie]

When interest calculated yearly pay lumpsum on last day of the mortgage year, it has effect of reducing balance owed and you get the interest on the money for as long as possible.  If you pay on day one of mortgage year you get no benefit of a reduced balance and lose your interest on the amount paid off.  Some lenders will charge for early repayment so check your details, you can get charged anything as a fee (me £1200)

Daily interest payments, it doesn't matter when you pay, but the Halifax will take payments into account on a daily basis but only review your payments once a year.  don't know if others do this.

Hope it helps

[Chris Elworthy]

If you wanted to pay off yer mortgage in a lump sum,what would be the best time of year to do it.(once read that the time of year matters but I don't remember why)?

All silly replies accepted with the usual enthusiasm.

Any building society operatives out there

Not that I can quite pay it off just yet but am hoping for a spot of good luck on the old gee gee's

On a Thursday after you've collected your pension.

PS - I would have thought paying off the 7 credit cards used to fund Westy Mods was a greater priority

[mad lon]

Thanks for the replies and yours Chris

[S8ight]

we left £100 on ours when the wife paid it off. that way the building society keeps the deeds nice and safe for you  

also this way if you want to re mortgage it saves a lot of hassle

[jak]

we left £100 on ours when the wife paid it off. that way the building society keeps the deeds nice and safe for you  

SWMBO is a Licensed Conveyancer and says that it's all going to be computerised and no one will have deeds in future - fills me with confidence - not

John.

[Rick S]

.....just watch out for penalties if you're on a 'deal' with your lender.

If you are, most will allow you to pay off a portion of it in each year (10% ish). As S8ight says you can often leave some money outstanding on the account for them to retain the deeds, sometimes this tactic can be used with lenders who will charge you for fully redeeming the mortgage (eg Northern Rock) as you can just redeem most of it.

[Mike H]

Why not keep a small mortgage just to help with your credit rating?  Or switch to an offset style/oneaccount thingy so you will be able to borrow at mortgage interest rates when you buy a new Westy !!

Mike

[mad lon]

Follow this link.

Money Saving Expert

Superb site run by Martin Lewis who is well know in the financial world.

Checked that out...it really is a good site