Wisdom of paying off my mortgage early

zcscdc1

I have a tracker offset mortgage pegged at 0.34% above base for the remainder of the term (21 years), with 250k outstanding.

Due to inheritance i am now in the position of bieng able to pay my mortgage off. Conventional wisdom suggests i do this, but why would I when I can get say 2.5% on the 250k by locking it up for a year compared to the 0.84% interest bieng charged on my mortgage.

Am I bieng silly here ? Have i overlooked anything ?

(I noticed that ever since I took the mortgage out four years ago it has been possible at any point to get a significantly better return that base rate + 0.34% on savings, and this makes me think this situation my continue for a while)

dimbo61

Barclays have a 3.1% cash ISA ( best buy but finishes on tuesday !!!) so put £5100 each into that then consider an good savings account which is paying 2.5% or over ( dont forget the tax!!).
Only tie up the money for one year in case rates rise.
You must be clearing £12/14K in repayments so you could put the money into the offset and drip feed your savings and pension.
Time to speak to a good IFA