GeoffCapes
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Do you know the way to get around a redemption fee?
Read the terms and conditions. What you'll find is that it will say over what period the 7% is charged on the remaining balance. Find that number, let's say it's 3 months. Then pay off all but 4 months worth. Let's say that leaves £8k in the mortgage account... The 7% is then charged on that amount. Which is £560.
And with the £29.5k he's just saved he could buy an early GTS; win-win.
Makes perfect sense.
However, leaving only 100k in a mortgage and getting a 75-80k motor works as well.
A house he is building currently already has a buyer, so he should pocket 100k+ for that next year.
So his mortgage is covered either way.
He likes the idea of putting his Nan's money to some 'irresponsible' use as apparently she was a bit of a 'wild one' when she was younger. Whatever that means!
Rumour has it that she was a firm favourite with the American GI's in WW2.