To Pay Off or not to Pay Off

Mike.A_3

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 !!!!!!

shaven-monkey

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.

Mike.A_3

Cheers Monkey, the redemption charge is actually included in that 8000 figure, thats the full total to pay off