Pay off mortgage?

omeyas

My son has about 15 years left on his small mortgage (he's 40), and now has accrued enough money to be able to pay it off in total. My thinking, rightly or wrongly, is that although it's nice to be be mortgage free, he might be better investing the lump sum,(possibly tie it up for a few years in a bond and get the returns), and keeping the mortgage running. He will at some time in the future want to move to a more expensive property, so would it be easier to increase his current mortgage later in the current climate, than say start all over again in a few years from scratch? Or is there a better option?
Thanks

anh1904

Depends. You can get mortgages for 1.99% and earn signifcantly higher than that tax free.

Do some full cashflow spreadsheets, together with all associated fees etc., then make a decision based on the difference between the situations, and your son's position with regard to not having signifncant cash reserves.