Getting mortgage free (or at least reduce)

unkle

I currently have quite a large mortgage (just under £210k) with 20 years to go.
I'm a single income (wife currently stay at home mum) and all of our savings (excet my ISA) are in my wife's name. We have approximately £55k in total. A few other small share investments total about £3k.

Now as my wife is earning interest gross at around 6% is there any point paying some off the mortgage (current rate 5%)?

Also I am saving around £200 a month - again into my wife's name.

I think not paying it off the mortgage is currently the best thing todo as rate of return is better than the saving on the mortgage rate, am I right?

Wyndham

You are right if the 6% is tax free, which I think is what you're saying. If it were not tax free it would be worth paying off the mortgage, but as your wife isn't paying tax (or at least I assume she isn't) then in your case it is better not to pay it off.

unkle

thanks,

Wife doesn't pay any tax so you have echoed my thoughts that saving is better than paying off the mortgage at the moment. Obviously if she becomes a tax payer I Will change.

Wyndham

You're welcome.

Of course, if you press the 'thanks' button on my message it all adds to my stats and makes me feel good