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To Pay off or not?

Stuart_L_2
Stuart_L_2 Posts: 7 Forumite
in Mortgage-free wannabe
I have about £7,500 left on my tracker repayment mortgage costing me .69p per cent interest. But I have more than that in an ISA earning around 3 per cent. Given current inflation levels should I pay off the mortgage with savings or leave it as it is? There are no penalties for overpaying it.

Comments

  • mrso2b
    mrso2b Posts: 314 Forumite
    I would pay it off and be mortgage free!
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No dont pay it off using your OLD ISA,s !
    Better to pay off asap using income each month and at the same time make sure you fill your ISA,s each year ( long term TAX free savings)
    You are also earning a better rate of interest from your ISA,s than you are paying on the mortgage.
    Being Mortgage Free is the aim of this board but wasting money and losing the TAX free shelter of your current ISA is bad planning !
  • Stuart_L_2
    Stuart_L_2 Posts: 7 Forumite
    Yes I am earning more interest on my savings than I am paying on my debt, BUT with inflation running even higher than my ISA rate is there any point in keeping it in there?
    Also, what is the effect of inflation on debt?
  • black_taxi_2
    black_taxi_2 Posts: 1,816 Forumite
    Debt-free and Proud! Mortgage-free Glee!
    7.5k mortgage only----o/p it

    KEEP isa going
    £48515 interest £181 (2009)debt/mortgage-MFIT/T2/T3
    debt/mortgage free 28/11/14
    vanguard shares index isa £1000
    credit union £400
    emergency fund£500
    #81 save 2018£4200
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