Impact of Crisis!

mollycat

Hi All,
Can anyone with more financial nous than myself please advise me whether its STILL better to to pay off my mortgage or keep my money in my pocket, (about 35K), given the crisis.

Had planned to pay off this remaining sum, but am now a bit uneasy and not really able to think it through with my limited financial expertise.

Thanks in advance amigos!

StuartGMC

Is the £35k in addition to other savings for rainy day? If not, then you should always have some money to call upon so don't pay every last penny in.

See the MSE thread on banking licenses and cover for deposits. Your decision though on whether the money sits in a "British" bank or another one.

mollycat

Hi Stuart, thanks for your reply.

No £35K is not all our savings. Have been on verge of paying off mortgage for a couple of months now but current crisis giving me the "willies"; i mean where will we be in a years time, house prices plummeting and cash is king?

I know my worries are a bit irrational but i just dont want to use £35K to own my house outright if that house is worth a lot less in the future.

Hope this makes some kind of sense.

uzubairu

mollycat wrote: »

Hi Stuart, thanks for your reply.

No £35K is not all our savings. Have been on verge of paying off mortgage for a couple of months now but current crisis giving me the "willies"; i mean where will we be in a years time, house prices plummeting and cash is king?

I know my worries are a bit irrational but i just dont want to use £35K to own my house outright if that house is worth a lot less in the future.

Hope this makes some kind of sense.

You'll still owe the bank £35K regardless of the value of your home, so I'd just pay it off, if it wasn't the only savings I had.

Kaz2904

The other option you have is to make sure your 35k (can't seem to do a pound sign sorry)is in savings with the same provider that your mortgage is with so if it does go mamaries skyward and you can't access your savings you won't have lost out really as they will cancel each other out.
As has been pointed out already, you owe that amount on your mortgage so it makes little difference what the housing market does.
The time when it made a difference what was going on with the housing market was when you bought and it will when you sell too. Other times it is fairly irrelevant. Don't forget that if the bottom does fall out of the market you would be paying less for anything you wish to buy too.
It could make a difference if you were thinking about investing your money in buying another property for a BTL but that's a whole new ball game!