Can I repay my mortgage early if I want?

We always suggest that you repay your mortgage whenever possible - you'll save a lot of interest. The only disadvantage is that some mortgage agreements will charge you a fee for early repayment.

Many traditional mortgages charge redemption penalties for early repayment – the newer types of mortgage like the Flexible, Current Account and Offset mortgages do not. With these 'new' mortgages you can manage your money in the way that best suits you - so if you want to overpay and underpay, it's all perfectly within the rules.

Traditional mortgages often charge redemption penalties for early repayment, because they are losing out on the extra interest you would have paid had the mortgage gone to full term. These penalties are sometimes expressed as a percentage of the outstanding capital and sometimes as a multiple of your monthly repayment. The penalty can also depend on what stage of the mortgage term you are at so you will have to refer to the terms and conditions of your mortgage to be sure of where you stand.

If you think that you might want to pay your mortgage off early, then discuss your situation with a mortgage broker. He’ll advise you.