Fixed Rate mortgage - Pay off early

[Afterflood]

Hello all,

I am currently on a fixed rate mortage.

I know that there is a penalty to switch to a variable rate but will I be penalised if I pay off a fixed rate mortgage entirely?

Thank you for advice.

 

[so-crates]

Insofar as I understand it, yes - you would be penalised. You'd need to check your terms and conditions to see what the penalty is. Some mortgage lenders will allow some overpayment on fixed term up to a percentage of the outstanding amount so that may be worth looking into also.