Best time to pay off mortgage?

LeCoop

I am 15yrs into a 25yr term paying off my 5.5% mortgage at a rate that will clear the debt in c.30mths

I have sufficient funds in a 4% WebSaver account to pay it off tomorrow and other savings that I could turn into ready cash fairly easily.

On the face of it, the simple maths says I should take the plunge and do it.

Are there any drawbacks to this that I haven't thought of ?

payless

Sometimes worth keeping the account open with a minimal balance outstanding

Reaper

As Payless says keeping a minimal balance it sometimes useful. Apparently some even let you reduce it to £1 and leave it there. It means they continue to safely store the deeds for you and gives you a continuing good credit history.

Also look in your T&C. Some mortgages have an early redemption fee.

Finally make sure you have enough savings left over for a "rainy day".

Apart from all that though, yes in principle you are best off paying most of it off as you pay more in interest than you earn on your savings.

Robert_Sterling_3

You are paying 5.5% and getting 4% before tax and perhaps 3.2% or 2.4% after tax.
You are right to consider paying some or all of it off.