Why doesn't anyone want me to pay off my mortgage??

Guy57

I had a review of my accounts today with my bank and when I told them that I will be in a position to pay off my £40,000 mortgage next June they tried to put me off?? They are going to contact me to give me the lowdown on offsetting my savings against my mortgage in effect giving me an interest free mortgage. I really want to clear my mortgage and have the peace of mind that my house is bought and paid for but everyone I speak to says I shouldn't do it?? I will still have some savings in ISA's and will continue to save as I have been doing, so am I doing the wrong thing or not? HELP!!

regularsaver1

Its your decision at the end of the day. You told them you want to clear mortgage

Guy57

You're right, I do ,but with accountants etc saying I should invest it I don't want to make a big mistake and do the wrong thing,although I can only see it as a positive thing to do, but seeds of doubt do creep in and you begin to wonder!

Nytehawk

You are in a very good position. My accountant always says to me the last debt I should pay off is my mortgage because if you ever want to apply for credit or credit cards, having a mortgage is your biggest asset and scores well for you..................... Just a thought

regularsaver1

Its just if you do need access to the money later it is easier in savings than it is in equity I suppose is the reason for it

Guy57

Good points-thanks, it all goes towards helping me decide,cheers:beer:

jamesd

You should be able to get a really good deal on a mortgage (but probably NOT from your bank - get a fees-free whole of market broker to see if they can beat the bank!).

Investing, possibly in a mix of cash ISA and equity ISA if you want more safety, is likely to get you higher interest rate and investment returns than the cost of interest on the mortgage, so borrowing money a morgage rates can be a really good idea.

Ultimately you do have to be comfortable with it. I am. If you're not sleeping at night, don't do it.

A standard flexible mortgage with daily interest calculation and the ability to overpay as much as you want and withdraw the overpayment when you like is cheaper than the offset mortgages, so it's a better deal if you aren't continually depositing and withdawing the money.