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To Pay Off or not to Pay Off
Mike.A_3
Posts: 7 Forumite
Best give you the facts.
I have a mortgage coming to and end (19 months). Interest is 5.4% ( I know - was good at the time)
A redemption total of £ 8000 to pay, and I have that to pay it comfortably.
Do I pay it off, getting conflicting advice. I have other savings so can afford it, and I can afford to save current mortgage payment of 450 in a savings account
So, what to do.............over to you !!!!!!
I have a mortgage coming to and end (19 months). Interest is 5.4% ( I know - was good at the time)
A redemption total of £ 8000 to pay, and I have that to pay it comfortably.
Do I pay it off, getting conflicting advice. I have other savings so can afford it, and I can afford to save current mortgage payment of 450 in a savings account
So, what to do.............over to you !!!!!!
0
Comments
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If there's no early redemption charge then pay it off and save the payments in a cash ISA or one of the recommended regular payment savings accounts from front page.
If there is an early redemption charge and it's greater than £684 (the interest on £8000 over 19 months, I believe) then you're best off paying down the debt to £1 (or as low as it can get without penalty) and then paying the interest on that when the mortgage comes to an end.
If that makes any sense."Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves." - Norm Franz0 -
Cheers Monkey, the redemption charge is actually included in that 8000 figure, thats the full total to pay off0
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