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Should I clear mortgage or not?
governor_2
Posts: 4 Newbie
Hi,
Im looking to clear my mortgage in the next few months. I have 35k outstanding on the mortgage & have almost £35k savings. I am unsure whether to clear the mortgage using my savings or whether I should take out an offset mortgage so that I still have access to my savings if I require. Any advice or opinion would be great. Thanks
Im looking to clear my mortgage in the next few months. I have 35k outstanding on the mortgage & have almost £35k savings. I am unsure whether to clear the mortgage using my savings or whether I should take out an offset mortgage so that I still have access to my savings if I require. Any advice or opinion would be great. Thanks
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Comments
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clear it morgage free and then try saving again obvs be a few years but you own your houseDebt free in January 2011 dont owe a penny to anyone after 8 years in the red :beer:0
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What is your mortgage interest rate, and how does it compare to your savings IR?In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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The interest rate on my mortgage is 2.49% & the interest rate on my savings is 2.5% gross.0
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I am assuming you are a tax payer which means the NET interest on your savings is less than the interest you are paying on your mortgage. This implieseither you should clear your mortgage or offsett your savings against mortgage. However if I was you i would have a look about and see if you can get a better net return for savings than you mortgage rate first.MF aim 10th December 2020 :j:eek:MFW 2012 no86 OP 0/2000
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