Comments on: I Reduced My Mortgage By 15k And Saved 30k http://www.propertyinvestmentproject.co.uk/blog/i-reduced-my-mortgage-by-15k-and-saved-30k/ DOCUMENTING ONE MAN'S JOURNEY TO BECOMING A PROPERTY MILLIONAIRE Tue, 16 Mar 2010 01:01:51 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: The Landlord http://www.propertyinvestmentproject.co.uk/blog/i-reduced-my-mortgage-by-15k-and-saved-30k/comment-page-1/#comment-7691 The Landlord Wed, 24 Oct 2007 17:04:08 +0000 http://www.propertyinvestmentproject.co.uk/blog/2007/10/23/i-reduced-my-mortgage-by-15k-and-saved-30k/#comment-7691 Hey V, I didn't need to "dodge" early repayment penalties because there aren't any for my particular policy. There is, however, a 6k (approx) penality for completely clearing my balance with in the "tie in" period, which is 2 years. You don't get penalised for making lump payments on interest-only mortgages, because they don't expect you to pay the entire outstanding balance in one go after 25 years. Are you sure you'll have penalities for making lump payments? Check your policy, you might be surprised. Do you have an interest-only or repayment mortgage Let me know how you get on. One of my policies switch to a 7.3% variable rate next year, I plan on remortgaging at that point. There is no way i'm paying that much interest when the baserate is still 5.75%. Hey V,
I didn’t need to “dodge” early repayment penalties because there aren’t any for my particular policy. There is, however, a 6k (approx) penality for completely clearing my balance with in the “tie in” period, which is 2 years. You don’t get penalised for making lump payments on interest-only mortgages, because they don’t expect you to pay the entire outstanding balance in one go after 25 years.

Are you sure you’ll have penalities for making lump payments? Check your policy, you might be surprised. Do you have an interest-only or repayment mortgage Let me know how you get on.

One of my policies switch to a 7.3% variable rate next year, I plan on remortgaging at that point. There is no way i’m paying that much interest when the baserate is still 5.75%.

]]> By: Victoria http://www.propertyinvestmentproject.co.uk/blog/i-reduced-my-mortgage-by-15k-and-saved-30k/comment-page-1/#comment-7689 Victoria Wed, 24 Oct 2007 16:57:01 +0000 http://www.propertyinvestmentproject.co.uk/blog/2007/10/23/i-reduced-my-mortgage-by-15k-and-saved-30k/#comment-7689 So how did you dodge the early repayment penalties, then? If I get the lump sum I'm expecting I could be tempted to reduce my mortgage in a similar way, given the current state of the market, but I know I'll have penalties at least until next summer when my rate switches from fixed to variable. So how did you dodge the early repayment penalties, then?

If I get the lump sum I’m expecting I could be tempted to reduce my mortgage in a similar way, given the current state of the market, but I know I’ll have penalties at least until next summer when my rate switches from fixed to variable.

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