Pay off mortgage?

tjm_3

We have ~ £114,000 in savings (after a recent windfall). There is £57,000 left on a repayment mortgage over 14 yrs (standard variable rate 6.4%) @ ~ £576/month. There would be no penalty (only a £115 repayment adminstration fee). Should we pay the mortage off or save/invest instead?

DawnW

I would pay it off if I were in your position to be honest, and be free of the millstone, especially given all the issues with banks and the economy at the moment. Even at the best of times the interest you will pay on the mortgage will probably be more than what you could get for savings, given that you have to pay tax interest except for ISAs. You will still have some left to invest. Fill your cash ISA if you haven't already done so and share the rest between two or three different banks. Some are offering 1 or 2 year bonds at good rates at the moment if you don't immediately need the money. That is what I would do anyway. Good luck!