Cash in P"Bonds and Pay Mortgage Off ?

JB9302

Hi,
Got an outstanding £9500 on the mortgage , paying £310 per month at current rates till Jan 2013.
Have similar amount in Premium Bonds and was considering cashing them in and paying outstanding mortgage off , leaving me £310 better off each month .
I am retired (58) and have a works pension (wife works) and can afford to save the £300 or so each month if its paid off now.
Any thoughts ?

Thanks

Julian

sleepless_saver

That sounds like an excellent idea.

Perhaps worth reading this before deciding where to put the money you save by paying off the mortgage.

Jonbvn

What is the interest rate of your mortgage? If it is quite low, it may be better to save in a cash ISA instead.

Whatever you do sell the PB's soonest, since they give an extremely poor return (on average).

JB9302

Jonbvn wrote: »

What is the interest rate of your mortgage? If it is quite low, it may be better to save in a cash ISA instead.

Whatever you do sell the PB's soonest, since they give an extremely poor return (on average).

Its 2.5%

Thanks

Julian

stator

Interest rates on cash ISA's are about the same at the moment so I would be tempted to pay it off since there's little difference either way. As long as you have sufficient money to cover day to day living and some rainy day money just in case your car blows up or your roof caves in.