final hurdle

jimmejak

just stumbled on this forum while looking for inspiration situation- mortgage alliance-leicester monthly fee free base rate tracker £23000 savings-alliance-leicester plus saver £23000 premier direct- £1500 debt free employment semi secure (who knows nowadays) dilemma- i love having money in bank but this is what i have wanted to do kill the mortgage! can somebody outwith my situation give me the logic

EssexHebridean

Get your emergency savings added to the current pot then clear the mortgage I would say. Lucky old you being in that position - although no doubt lots of hard work has led up to it. Of course, this assumes that your mortgage rate is less favourable than your savings rate and that you already have your years ISA entitlement filled?

StuartGMC

We're fast approaching 100% offset ourselves. We won't pay off until we have also built up a healthy reserve on top, but, there is the risk that if unemployed, you (like us) would be forced to draw upon your savings until £16k before means testing benefits would apply?

As EH notes, I assume you've checked the interest costs and it is close to neutral in terms of interest charged on mortgage and that earned on savings?

Try to get to 3-4months income as ready savings then "press the button" and clear the mortgage; assuming you have no needs for major works like windows, doors, guttering/soffits/facias, kitchen, bathroom etc which require funding in the short term?

Good luck!