Pay off mortgage or not pay off

Scotness

I am in the lucky position to have some cash spare. I currently owe 151k on my mortgage and have about 80k available to spend.

My House is worth 180k.

Im thinking of moving and using the cash plus equity to upgrade house to approx value 270k.

My current mortgae deal runs out in March 2012 with early repayment charge of 3k.

Should I change deal now and use my savings to pay some of the mortgage off or should i just sit on the cash until later.


Need some opions on this:T

Jonbvn

It depends on the interest rate on your mortgage. If it is above 3%, then it is likely to be better to pay off a lump sum on your mortgage. However, I would suggest you wait a year to avoid ERC's.

dimbo61

Do you live in scotland ?
Do you pay 3% stamp duty if you buy a property over £250K
Have you found a property already ?
If you have £3000 spare please send me a cheque to my home address rather than give it to your lender.
Unless you are desperate to move now why not overpay your mortgage ( check with your lender what is allowed ) and wait until next march before moving.
It normally takes 6 months from finding the perfect place to getting the keys