Mortgage-To pay off or not to pay off

Dan9314

Please help you money saving experts,
Is it better to pay off the rest of my mortgage (17K) with savings in an ISA or leave until it finishes in 5 years time. I have thought about Martin's idea of stoozing. What do you guys think?
Dan Dan, the not so money saving expert!

Ian_W

Hi Dan & welcome,
In a strictly MSE sense depends on which earns or costs more. If your tax free savings earn a higher rate interest rate than the mortgage co charge you for your loan, NO, if it's the other way about, YES.

Nothing in life is that simple though. If it cleans out your savings no, always have some rainy day money for unforseen events and also consider that your ISA allowance [tax free saving] for that year is lost once you cash them in. On the other hand nothing beats being mortgage free [well some things do - but we won't go into them here!!] and it frees up money to save in the future.

HTH.

PS: Don't do stoozing, far too complex for my simple brain!!