Can you pay lump sum and reduce years of mortgage?

[Slippers]

Just wondering can you pay a lump sum of about 12K off mortgage - which would leave a remainder of about 8K left on mortgage. Then get the 8K that is left and get the term reduced from the remaining three years to 1 year instead?
Also would you need a solicitor to do this, or can you just organise this with the mortgage company themselves?

 

[LDFerguson]

Assuming the figures add up, you can do this directly with the lender, without the need for a solicitor.

 

[ClubMan]

Just wondering can you pay a lump sum of about 12K off mortgage - which would leave a remainder of about 8K left on mortgage. Then get the 8K that is left and get the term reduced from the remaining three years to 1 year instead?

Yes - just tell your lender in writing that you want to make an accelerated capital lump sum repayment of €12K and to keep your repayments at their "normal" agreed/scheduled level until further notice thereby reducing the effective term of the mortgage and saving you (probably significantly) on interest charges avoided. You can estimate the potential savings achievable using such an accelerated repayment strategy using Karl Jeacle's mortgage calculator. When you pay a chunk off the capital like this then you may also be able to save by putting lower mortgage protection life assurance cover in place of the existing cover which will be for a higher amount based on the original mortgage terms/details.

Also would you need a solicitor to do this

No.

or can you just organise this with the mortgage company themselves?

Yes.

Post crossed with LDFerguson's.