what to do?

lorny80

my hubby and i bought our house for 200.000 and got a mortgage of 40,000, we are just coming up to the end of our 5 yr fixed term, and have a savings investment coming out which is worth 42,000.
here are my question...
do we pay off the mortgage? pay off a lump of the mortgage? if so how much? and if we leave something on the mortgage, do we have large monthly payments, over a smaller term, or smaller payments over a long term. also which way ( of the pay back a fixed amount but continue to have a mortgage) would mean we were paying back less over all? i dont want to pay back 20,000 and leave 20,000, but end up [aying thousands more over the full term, if i can change the way i do it and pay back less in interest.
god i am sooo confused!"

dizzybuff

Morgage free , id pay it , ask for a redemption statement for the day the fixed term ends and wack em with a big fat payment

opinions4u

Ok, if I've understood correctly, you have a £40k mortgage and £42k in savings soon to be available.

You're asking whether or not you should pay off your mortgage in full or part.

1) Do you have a contingency savings fund, typically 3-6 months net pay, set aside for a crisis like unemployment?

2) Who is your mortgage with?

3) What rate (SVR or tracker?) will you be going on to after the fixed rate ends?

For me, if your mortgage rate is going to be higher than the best net easy access savings rate (typically around 2.5%) then you should ensure you have a contingency fund and then pay the rest of the capital off the mortgage.

If that leaves a small mortgage outstanding I'd be tempted to pay at the same levels that you currently do to get rid of it a lot faster.

Hope that helps .

lorny80

1, nope. nothing like that at the mo.
2, halifax
3, if we dont do anything it wil go onto a standard rate. i think!!
im confused.