savings into mortgage?

absolutelymike

Hi
This is probably a really silly question. We have just realised that the £30k my wife has sitting in the bank (barclays bonus saver) would probably be best spent on paying of our £18k mortgage debt.

The house cost £54k in 1998 and we have paying approx £190 a month, currently at 4.5%.

If we carry on at that rate, keeping our savings in the bank, surely we are doing the wrong thing? According to the calculator we would need to get 5.6% on the savings!!! There are apparently no charges by Halifax for early repayment as well.

We are not the best financial minds and would really appreciate a heads up here. Is there any reason why it would not be advisable to pay the debt off now?

Thanks

RosieTiger

Surely you have the answer available to you ? Can you earn more in the savings account, or any other you can find, than the cost of the mortgage interest ? If you can keep it in savings.

Personally, I would pay off the mortgage and leave the balance in savings - ISA's ??

FairyElephant_2

RosieTiger wrote: »

Personally, I would pay off the mortgage and leave the balance in savings - ISA's ??

Me too!

I have just 'dumped' most of my savings into the mortgage, as even my best ISA rate was paying less than the interest on my mortgage. Not paid it off yet, but am a heck of a lot closer now!

Go for it OP!

dimbo61

Yes clear your mortgage and put the rest in the best fixed rate ISA you can get 2x£3600 before april 4 and 2x£3600 after the 5th.
Keep saving the old mortgage payment into a regular saver in your wifes name if she is a non tax payer !!
GOOD LUCK

G_M

The only reason not to pay off the mortgage with your savings would be if you are tied in to a deal - either a fixed rate or discount off the mortgage variable rate. Usually when you take out these deals you are tied in for 1, 3 or 5 years or whatever and there are penalties if you pay off early. Check your terms and conditions, or ask your mortgage provider.

If you ARE tied in, save the cash in ISAs / savings accounts till the deal ends and then pay off the mortgage.

For a good interest rate, try Investec’s High 5 account.
www.investec.com/UnitedKingdom/PrivateBank/BankingandTreasuryServices/High5.htm
They'll also give both you, and an existing account holder (referree), £50 when you apply. If you want to use me to get this, PM me.

Trying_to_be_good

G_M wrote: »

For a good interest rate, try Investec’s High 5 account.
www.investec.com/UnitedKingdom/PrivateBank/BankingandTreasuryServices/High5.htm
They'll also give both you, and an existing account holder (referree), £50 when you apply. If you want to use me to get this, PM me.

Referrals are only allowed on the referrals board - suggest you remove this from you post, as I know you're only trying to help.

absolutelymike

thanks for all your advice, gonna pay it off and invest the rest. Goood luck on your own quests!

Radish72

Dont forget to add your name to the roll of honour when you become mortgage free,what a lovely feeling,
:beer:

Robert_Sterling_3

Clear your mortgage now. :T :T :T :T :T :A

Nala

Robert_Sterling wrote: »

Clear your mortgage now. :T :T :T :T :T :A

What he said:j