Can you pay approx 10K into Mortgage to reduce term?

C

Callyeon

Guest
My friend is coming into some money approx 20K soon. She owes 18K on her mortgage, but was thinking of paying 10K off the mortgage - which will leave a remainder of 8K, and then also reducing the term and trying to finish her mortgage in one year, instead of the remaining three years.
Can you do this and if so how easy is it to do, do you just ring the mortgage company up and arrange this, also is there any penalties for doing it.
thanks a lot.
 
On the question of penalties, these normally apply in the case of fixed rate mortgages. Tell your friends to check the mortgage agreement, or speak to the lender.

Otherwise what she wants to do should be no problem.

She should call or visit her branch and tell them she wishes to make a payment of €10,000 against the capital amount outstanding on the mortgage.
 
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