Still worth paying off? Interest rate cut/house price fall

crockpot

Hi

What do you think?

As my house is now worth 10% less than it did last year and who knows what it it will be worth next year,still a good idea to pay off?

Welshlassie

You still owe the same amount regardless of how much your house is worth. Unless you are planning on moving house or remortgaging any time soon the value of your house doesn't mean much.
It is definately worth paying off if you need to remortgage and your LTV is getting higher.

jamesd

If the mortgage interest rate is below available savings rates then it usually makes sense to save instead. Whether that's possible for you depends on which savings accounts you have and your mortgage rate.

Badger_Lady

As above, two key questions:

1. What is your mortgage interest rate?
2. What interest rate could you get on savings?

If 2 is higher (which for many people including me it is), you'd be better paying your mortgage interest-only and putting as much as you can into savings.