Should I shouldn't I

I am about to receive £33,000 pension pay out (I'm 53) and have a £27,000 repayment mortgage @ £198 a month

decisions decisions (a good one to have to make I know!) does the mortgage get it or...mmm

Replies

  • Depends on the rates you're paying/earning and what you would use the payout for if you didn't pay off your mortgage...
  • no brainer for me , pay the mortgage off and that still leaves 6K and the saving of £200 a month
  • Voluntary Severance?! ;)
  • suisidevw wrote: »
    Voluntary Severance?! ;)

    No.............
  • JonbvnJonbvn Forumite
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    OP, you need to tell us your mortgage interest rate. What about other savings and pensions etc?
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • MeadowsMeadows Forumite
    4.5K Posts
    Mortgage-free Glee! Hung up my suit! Xmas Saver!
    I would pay off the mortgage, and then use the £198 to go back into the savings.
    As all interest rates go back up (fingers cross) in the future your £6000 plus monthly savings (almost £2,400 a year) will soon start to grow.

    We are a similar age and paid ours off with a lump sum in January, it's a great feeling to know the house is yours. It's a hard decision to use that amount of money, but I'm sure you won't regret it.

    Good Luck with your decision.
    Everything has its beauty but not everyone sees it.
  • dimbo61dimbo61 Forumite
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    Hi I take it you are now living on a pension from your former employer?
    As savings rates are rather poor at the moment you might well be better off clearing the mortgage provided you will not be hit with an Early Repayment Charge if you are in a fixed /tracker deal.
    If you have over £16k in savings you would not be entitled to any means tested benefits such as pension credits so again another good reason to clear the mortgage !
    GOOD LUCK
  • Thanks all for your replies

    Yes, I take home £1500 a month pension from a previous employer and I am getting the same amount from a new job that I started in March.

    The interest on my mortgage is 4%
  • JonbvnJonbvn Forumite
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    Thanks all for your replies

    Yes, I take home £1500 a month pension from a previous employer and I am getting the same amount from a new job that I started in March.

    The interest on my mortgage is 4%

    4% is quite difficult to beat in savings. Also, given that you have an excellent guaranteed income, paying a lump sum of the mortgage seems like a good idea.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
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