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  • FIRST POST
    • langford1969
    • By langford1969 7th Oct 17, 12:29 PM
    • 4Posts
    • 0Thanks
    langford1969
    Should I pay it off?
    • #1
    • 7th Oct 17, 12:29 PM
    Should I pay it off? 7th Oct 17 at 12:29 PM
    My offset is has a rate of 2.13%
    I have 150,000 left to pay
    I have over 240 000 in the offset account
    I can pay it off with no penalty I believe.
    My monthly payments are about 900
    What would you do?
    TIA
Page 1
    • Debtslayer
    • By Debtslayer 7th Oct 17, 1:06 PM
    • 434 Posts
    • 616 Thanks
    Debtslayer
    • #2
    • 7th Oct 17, 1:06 PM
    • #2
    • 7th Oct 17, 1:06 PM
    How many months are remaining?
    Personally I'd pay it off as I'd like the feeling of being mortgage free
    Current Mortgage 01.10.17 £113,513.88
    MFW Start Mortgage: £114,794.64
    Current MED: 2036 Target MED: 2026
    Overpayment Target for remainder of 2017: £2,000
    Mortgage overpayment savings: £684.80
    MFW No 124
    • clairebeth
    • By clairebeth 7th Oct 17, 4:45 PM
    • 140 Posts
    • 53 Thanks
    clairebeth
    • #3
    • 7th Oct 17, 4:45 PM
    • #3
    • 7th Oct 17, 4:45 PM
    Personally, I would, but I'm not you of course. Pay it off, put some of the rest aside in the best interest account you can find as an emergency fund. Put the rest in pension/investment and take it from there? But that's just what I would do, not necessarily what you SHOULD do!
    • Peelerfart
    • By Peelerfart 7th Oct 17, 9:11 PM
    • 1,837 Posts
    • 1,618 Thanks
    Peelerfart
    • #4
    • 7th Oct 17, 9:11 PM
    • #4
    • 7th Oct 17, 9:11 PM
    Yup, agree with above, based on the info provided pay it off. Though there may be things that could skew that. Credit card debt for example
    Space available for rent
    • YHM
    • By YHM 7th Oct 17, 9:15 PM
    • 303 Posts
    • 99 Thanks
    YHM
    • #5
    • 7th Oct 17, 9:15 PM
    • #5
    • 7th Oct 17, 9:15 PM
    Who is your offset with? Some lenders will allow you to pay down to £1 and then keep the facility open if you ever need it.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • TrickyDicky101
    • By TrickyDicky101 7th Oct 17, 9:27 PM
    • 2,827 Posts
    • 1,829 Thanks
    TrickyDicky101
    • #6
    • 7th Oct 17, 9:27 PM
    • #6
    • 7th Oct 17, 9:27 PM
    Why would you bother paying off? Just keep at least £150k in the offset and then do what you want with the remainder. That way you retain maximum flexibility whilst minimising interest paid.
    • getmore4less
    • By getmore4less 8th Oct 17, 6:05 AM
    • 30,821 Posts
    • 18,429 Thanks
    getmore4less
    • #7
    • 8th Oct 17, 6:05 AM
    • #7
    • 8th Oct 17, 6:05 AM
    My offset is has a rate of 2.13%
    I have 150,000 left to pay
    I have over 240 000 in the offset account
    I can pay it off with no penalty I believe.
    My monthly payments are about 900
    What would you do?
    TIA
    Originally posted by langford1969
    what rate are you getting on that other £90k?
    (most offsets it will be 0%)

    Might want to look at investing elsewhere

    change to 100% offset and have the payment come out of an offset account and forget it, easy access to money should you need it.


    If you plan to move and can port you currently have a total pot of £390k + equity to buy somewhere new
    • langford1969
    • By langford1969 8th Oct 17, 8:01 AM
    • 4 Posts
    • 0 Thanks
    langford1969
    • #8
    • 8th Oct 17, 8:01 AM
    • #8
    • 8th Oct 17, 8:01 AM
    I have over ten years to pay it off...currently i am saving about 300 a month from the interest which is cool....i have saved over 20k off the final amount as well
    • langford1969
    • By langford1969 8th Oct 17, 8:03 AM
    • 4 Posts
    • 0 Thanks
    langford1969
    • #9
    • 8th Oct 17, 8:03 AM
    • #9
    • 8th Oct 17, 8:03 AM
    I understand your thought process...the thing is there is very little out there as far as investments go.... i have teachers pension frozen and a local authority one i am paying into now.
    If i paid it off i would have about 100k in cash......could do something i suppose but I don't really want to lock it up
    • langford1969
    • By langford1969 8th Oct 17, 8:06 AM
    • 4 Posts
    • 0 Thanks
    langford1969
    I am with woolwitch for mortgage and Barclays for account

    I wonder if doing what you say will then allow me to still borrow if i need it...good idea.
    • getmore4less
    • By getmore4less 8th Oct 17, 8:23 AM
    • 30,821 Posts
    • 18,429 Thanks
    getmore4less
    With your Barclays offset there is a reserve account but they are trying to restrict them so best avoided these days.

    Stay offset if you may ever want access to the money(costs nothing)

    You excess funds get no interest move them to another account.

    if not sure where to put and for how long and want near instant access what about premium bonds?
    • Jimmithecat
    • By Jimmithecat 8th Oct 17, 8:32 AM
    • 116 Posts
    • 169 Thanks
    Jimmithecat
    I can see the logic of not paying off your mortgage- but for me it was very liberating - so I would pay it off and have one less thing to think about
    • dimbo61
    • By dimbo61 8th Oct 17, 5:23 PM
    • 9,591 Posts
    • 5,184 Thanks
    dimbo61
    We also have a Barclays/Woolwich offset mortgage which is fully offset.
    Any money over the offset balance is paid into other cash ISA,s which may only be earning 1/1.2% but that's better than 0%
    Try Nationwide saver account and current account both paying 5% at the moment
    Last edited by dimbo61; 10-10-2017 at 10:27 AM.
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