Not sure if I qualify for MFW

ABRDF

Hi

I have a mortgage with First direct taken out Dec 2010 (70K) over paid each month and now owe 46K. I am off setting 46k with FD so I don't pay any interest and just transfer 1k each month to pay the mortgage. I feel mortgage free but I have the knowledge that if need be I can tap into this offsetting when my 20K saving have gone.

My question would be is it better to pay off completely using the offsetting or stay where I am?

Drew:)

adwat

I'm not an expert on off-set mortgage accounts, but if you've got the outstanding balance covered then I'd just want to pay the whole amount off. If only to stop myself going on a massive spending spree or some such other temptation! If the offset account was fixed rate then I would keep the money in there covering the interest with an eye to move it to a higher interest account if rates shoot up... but I can't honestly see that being the case in the near future.