Mortgage lumpsum payment

[Mikeyjae]

I would like to know that if I payed my remaining mortgage balance with 1 lump sum would I be mortgage free and is it that easy?

Example to keep it simple.

31k (loan amount left, not interest balance if I was to go full term) remaining 8 years left on a 25 mortgage.

If I payed 31k in one lump sum is that it I am mortgage free? Now I need to look into ERC charges but before I test the water with my mortgage company I would like to know If there is anything else I need to consider.

[Jockman]

Subject to ERC, yes it's that easy. Ask for a settlement figure and this will be valid for a short period of time.

I personally would always leave a very small amount on the mortgage but other opinions are just as valid.

[Mikeyjae]

Jockman said:

Subject to ERC, yes it's that easy. Ask for a settlement figure and this will be valid for a short period of time.

I personally would always leave a very small amount on the mortgage but other opinions are just as valid.

Thanks for the reply, Is there benefit or reason for leaving a small amount running?

I will hopefully be looking at being mortgage free in the next month or few, selling in a few years and buying another house.

After reading horror story's about house buying involving chains, I would like to be able to sell up, rent for 6 months then buy without a chain.

[Jockman]

Mikeyjae said:

Jockman said:

Subject to ERC, yes it's that easy. Ask for a settlement figure and this will be valid for a short period of time.

I personally would always leave a very small amount on the mortgage but other opinions are just as valid.

Thanks for the reply, Is there benefit or reason for leaving a small amount running?

I will hopefully be looking at being mortgage free in the next month or few, selling in a few years and buying another house.

After reading horror story's about house buying involving chains, I would like to be able to sell up, rent for 6 months then buy without a chain.

Considering your strategy, Mike, I would be more minded to leave a small amount running for future borrowing requirements.

Having a mortgage doesn't stop you selling up and renting as the proceeds will pay off the loan at that time (hopefully). Indeed, being a renter doesn't shelter you from a future chain, though it does make it a wee bit easier.