Do I pay it off or not?!

bootman

deleted question

whiskywhisky

Personally would pay it off.

You mentioned the Interest Rates dropping - well if you have the 17k in the bank I would like guess it would be on par to if you would re-mortgage. And then you could have the additional costs of Mortgage Fee and possible valuation fee etc.

Swans1912

whiskywhisky wrote: »

Personally would pay it off.

You mentioned the Interest Rates dropping - well if you have the 17k in the bank I would like guess it would be on par to if you would re-mortgage. And then you could have the additional costs of Mortgage Fee and possible valuation fee etc.

I would also pay it off ONLY if you have an emergency fund of money somewhere!

TOPAZ_2

I agree - the feeling of being mortgage free, would far out-weigh whatever minor benefit you might get if you could find an interest rate (after tax) higher than your mortgage rates

Go for it

Topaz

basill

Well done for hitting your target so accurately!!

Personally I`d pay it, especially as the money has specifically been put aside for that purpose.

When you do pay it off why not do a regular saver with some of the mortgage money while you are still used to not having it!

B

Jonbvn

I assume you have other rainy day savings in ISA's? If not, please use this 17k to top them up. Never use ISA cash to pay of the mortgage, since ISA's are tax-free and usually higher rate than a lot of mortgages.

financialbliss

Bootman, Nationwide announced SVR rate cut last week. See this BBC news article: http://newsvote.bbc.co.uk/1/hi/business/7720239.stm

dimbo61

If you have this £17k tied up in ISA,s paying 6/6.5% fixed and your mortgage will go onto an SVR of 4.69% in december its not a good idea to use the money in ISA,s to clear the mortgage.
Keep filling the cash ISA,s and pay off the mortgage as and when you can
You want the best return for your money.

Swans1912

dimbo61 wrote: »

You want the best return for your money.

Out of interest has the OP worked out what the return would be over 5 years?

dimbo61

As I said the mortgage has 2 years to run 2010
The Nationwide SVR is now 4.69% and Bootman has £17k in savings
Hopefully in ISA,s !
Thinking long term he/she? is best keeping the ISA,s at the moment if they are earning more in interest than he/she is paying on there mortgage.
Keep on saving into ISA,s filling £3600 each year ( 2x if OH ) and at the same time pay off mortgage and overpay if they have the funds.
If ISA,s rates drop and the SVR at nationwide goes up then bootman can at any time pay off the mortgage
GOOD LUCK Bootman and well done on becoming MF ( if you want ! )

bootman

Thank you everyone for your kind input, here is what I have done.

I opened a poppy a/c yesterday witht £17K, the rate is 6.25%. I will let the mortgage run on the SVR with the Nationwide till the end of next year, but if rates should go up or anything happens with work I can still get to the moeny even if it does mean some loss of interest.

We do have our ISA full for this year but the 17k apart from that is all we have, not knowing wat is around the corner at the moment with the economy I think I feel a bit happier knowing I can get to some funds if needs be.

Thanks everyone!