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offset Mortgage should we pay it off ?
1967tic
Posts: 4 Newbie
please help us we are in a predicament wether to pay off our offset mortgage we Have a mortgage of 36,000 and savings of 27,000 they have given us 6.29% for our mortgage and 6.29% for our savings . As we have 9,000 outstanding which we could pay off from other savings would this benefit us, and pay off our mortgage and use the money to put into OUR ISA`S which we both have our mortgage is due to finish in 2017 , we have a independant morgage advisor and she says that we should keep it as it is, but we feel that we would benefit more by paying this off and do as we have said above. any information and thoughts would be appreciated form all on the forum many thanks
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Although this is a question of opinion, I thin the main things to point out are: Your Mortgage is a debt, so essentially you will still be paying interest on the excess £9000. The main thing like paying off your debts is how much money will you earn in your saving account/ISA after Tax, I know you won't be taxed on an ISA! If this is less than your mortgage interest rate then surely it is worth paying it off. If however you can get an extremely low interest rate without paying through the nose for it and your savings rate is alot higher then it would be worth it. I.e in the theory of using 0% credit cards to earn 6.25% interest in a saving account.please help us we are in a predicament wether to pay off our offset mortgage we Have a mortgage of 36,000 and savings of 27,000 they have given us 6.29% for our mortgage and 6.29% for our savings . As we have 9,000 outstanding which we could pay off from other savings would this benefit us, and pay off our mortgage and use the money to put into OUR ISA`S which we both have our mortgage is due to finish in 2017 , we have a independant morgage advisor and she says that we should keep it as it is, but we feel that we would benefit more by paying this off and do as we have said above. any information and thoughts would be appreciated form all on the forum many thanks0
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thanks for the comment0
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