Pay Off Mortgage Early

noprende

Ok this may seem like it has an easy one,but here goes.
I have £3740 remaining on my mortgage which finishes in June 2010 (thanks to overpayments).I also have about 20k in savings,so far so good
now the worrying bit well for me at least,I am a 53yr old IT Contractor and my current contract is about to end,and considering my age,and the recession jobs are'nt going to be easy to get,now my question do I pay off my mortgage in full or wait till the end of term? £3704 could keep me going for 3to 4months if i am out of work...still don't know what is for the best...thanks

StuartGMC

You may want to check the benefits board; I think if you paid off in a lump sum then were redundant it may be seen as deliberate reduction in your assets or similar term, however as you have more than £16k (I think the threshold) then you would not get benefits until savings dropped to this through consumption for bills etc?

I'm sure someone can comment factually.

However, if you keep paying in as you have been historically then I don't think it would be an issue.

dimbo61

You owe £3740 on the mortgage and are paying 5/6% on that !
You also have savings which could easily pay it off and leave you with £16k
I would pay it off now and be MF and if work dries up you are safe in the knowledge that your home is paid for and can not be repossed.
You will have less outgoings as you have no mortgage to pay and may be able to survive on savings and any benefits you are entitled to.
GOOD LUCK

noprende

Took the plunge and as of yesterday I am now mortgage free,it feels good
thanks to everyone for their advice
Noel

dimbo61

Well done Noel an early Xmas present to yourself
Hope the contract is renewed and you have good health and happyness.
Mortgage Free at 53 !!

StuartGMC

Good decision!
Well done

ShelleyC_2

Congratulations :j