I'd be grateful if anybody could give me an indication as to what the average penalty is for paying a lump sum off your mortgage whilst on a fixed rate?
When I had looked at this with First Active it was going to be around 6months interest, however they did say that if I was going to be going with them for the new mortgage that they would reduce or even completely disregard the penalty.
I'd be grateful if anybody could give me an indication as to what the average penalty is for paying a lump sum off your mortgage whilst on a fixed rate?
How long is a piece of string! it will vary according to amount, the rate on the mortgage, the amount of time left on the mortgage, the "interbank" rate when the mortgage was drawn, the individual bank's policy etc. etc. Your best bet is to contact your bank. Be aware that with current rates so high, and if you took out your fixed rate over a year ago, you may in fact be in a situation where there should be no break cost/penalty as your fixed rate may be below the current fixed rate for the equivalent remaining period.
e.g. 1 year ago you had a 3 year fixed rate of 4.9%. Today you want to break it, so there are 2 years left to go. Current interbank rate for 2 year is approx 5.2%, which is above your 4.9% so no break cost for the bank.