what do i do?

sh856531

My job is very secure

I have basically cleared all my other debt in the last 6 months eg car loan

It sounds like you're in a good situation then.

Assuming you have at least some savings to see you through an emergency then, personally, I would put most of the extra money into eliminating the mortgage as quickly as possible whilst interest rates are so low. There will probably never be such a cheap time to hammer the actual capital of your loan as there is now.

Now I've got to be honest, on a purely financial basis I wouldn't be surprised if there were a way to be make more money by saving up your money and then paying the debt off in a "one-er", but I don't really know if this is true in all cases. The reason I would personally go for trying to eliminate as much of the debt as possible is partly physcological - I don't like having debt and I like getting rid of it via the most cost effective and expedient means possible, even if I'm technically not maximising my resources by doing so.

Just my two cents. I'm interested to see if some people think you should go the other way and save all of it and pay the debt off later...

Best Regards

S

sortmyfinaces

cheers folks

i dont have much saving but have approx 250-300k worth of agricultural land mortgage free

i have cleared all my credit cards as well in the last few months :beer:

jac29

Hi, A lot depends on your lender. Options are that you can look for a good savings account....mmm, probably needs to be tax free especially if you are a higher rate tax payer. My mortgage is with the Nationwide. Interest calculated daily and no restriction on overpayments as i am on a base rate mortgage. These are noted as an 'overpayment' and can be drawn upon at any time either by reducing payments or not making them. For my situation this is the best option imo. Ok paying interest only if you have alternative means of clearing the debt in the future and remember that the best laid plans etc....just my two pence worth