Should I pay off my mortgage?

samsamsam_2

I have an 80k mortgage which I am repaying at around 7%. It has around 18 years to run although I have no intention of seeing out its term. My plan is to sell up in 2 or 3 years and take early retirement in France. I now have the funds available to pay off this mortgage. Are there any reasons I should know of why it might not be a good idea to do so? I thought I should check with forum members before committing myself. Thanks

dimbo61

As you will not be able to earn more in interest than you are paying on your mortgage each month of 7% I would clear the mortgage now IF you will have no early repayment charges ?
If you can do that then start saving your ( mortgage payment ) into cash ISA,s and other investments which you can take with you when you move to france.
Hopefully the housing market will pick up in 2/3 years and you will get a good price/ sell easily your home.

Good Luck and enjoy your retirement

StuartGMC

I would recommend you still keep some rainy day funds for any interim requirements whilst you save then clear the mortgage in total, ERC fees allowing etc.

Alternatively, does your lender offer an offset? It may be worth looking at the costs for switching to this (which in the present climate may well be prohibitive and thus negate any benefit of change) but then you would be paying 0% interest on the mortgage, pay no ERC and would be retaining the savings whilst you finalise plans for property viewing, legal fees etc in France but you won't earn interest on savings either. Of course all extra cash you are saving can go straight to Cash ISA plus other high interest earning savings in the interim.

getmore4less

Are you set up in france yet, might be worth starting the move planning now,

start to declutter, find your place in france sell/buy and rent for a while if needed.

3 years is not a long time and selling could still be an issue in 3 years, it was last time round.

Paying off a 7% debt is probably a good ,ove as long as you syill ahve some emergency money.

ISA's are not transferable to France(AIU) so if that is the long term plan it is not a problem cashing them in to pay down debt.