Overpay mortgage - left with 10k balance

[NCGrandParent]

I realise I have a very lucky problem to have. I have been overpaying my mortgage for last 4.5 years - come to end of 5 year fix in April but will still have 10k left to pay. So not enough to get another mortgage. Do I just go on variable rate to pay off rest or is there another option? I am very confused.

I would take out a 0% interest credit card, use it to pay off the mortgage and then pay off the card.

Look at general loans and 0% credit cards then compare to variable rate.

Oh I didn't think of that. I'll check to see if I can get that much credit. The last 0% I got there was a 5% fee for money and balance transfers. Would a mortgage pay off be like a cash transaction?

Thank you!

Can I pay my mortgage with a credit card? Yes. Technically paying down your mortgage with a credit card is possible, but it is a complicated process. Mortgage lenders do not accept direct credit card payments, so you will need to find a workaround service like Plastiq in order to carry out the transaction.

What is your SVR? And how long would it take to pay off the remaining £10k if you kept up the same rate of repayment. It may not be worth eg incurring a credit card transfer fee if you would have a short time left anyway

Good point re SVR versus loan /cc interest rate. A couple of good options.

Instead of trying to pay off the mortgage by credit card could you put as much spending as possible on an interest free card and then use that money each month to pay down? We just got a 24 month interest free card for spending. You have to be disciplined about paying it off though and in some ways I’d rather have the mortgage than the same debt on a credit card even if the interest was more. You know you’ll be paying the monthly payments and clearing the mortgage quite quickly as you’ve been used to doing it for so long.

Honestly for such a small amount I would just go on to the svr. It’ll hardly make a difference to be paying a couple of percent more on a tiny amount. Keep it simple imo. Could you clear that 10k in a year or so? If yes just clear it asap

@sashagabadon - I think in reality this is my best option. It should take less than a year and assuming SVR doesn't sky rocket by April, I think I prefer to pay for simplicity.

I agree.

You can often get a variable rate with no fee and no charge for switching/paying off early. It might not be the most competitive rate available but probably cheaper than SVR.

I asked my bank this as I'm in the same position as you, next July. They said I'll roll onto a SVR.

Or can choose a tracker which has no lock in period and no arrangement fees. The tracker interest rate looked better than than the SVR.

Apparently they get in touch when 6 months left on your fixed rate to discuss which option you want.

Really helpful thank you @lizkt and all.