Clear your mortgage early with new deals

BANKS are offering fixed-rate mortgages that allow borrowers to repay loans early without being hit with steep penalties.

Most will let you clear an extra 10 pc off the balance each year without extra charges.

If you want to pay more, or settle your mortgage before the deal ends, you may have to pay 6 pc of the total loan.

This can be as much as £9,000 on a typical £150,000 mortgage. But now four lenders — Coventry Building Society, Hinckley & Rugby BS, Al Rayan Bank and Together — offer deals without early repayment charges.

Coventry BS offers the cheapest fixed rate without early repayment charges, at 1.69 pc.

On a £150,000 loan, the twoyear fixed rate would cost you £613 a month and £15,220 overall including the £499 fee.