wanna be mortgage free but...

WaxiesDargle

...I'm dithering

ok I'm coming up to 55 and have £8,800 left to pay on my repayment mortgage which I currently pay £198 a month. I have £3,000 in an ISA and have now had a pay increase and have worked out that at a push I could possibly save £1000 a month. There is no restriction with me paying off as much as I like from my mortgage

I'm just after your opinion really on what you would do...save or pay off...which may be a bit of a daft question being that its a mortgage free wannabe forum. Thanks.

JonnyBravo

A couple of standard questions to start you off.

Have you got emergency savings as well or is that it?
What is the rate of your mortgage and what rate are your savings at?

WaxiesDargle

no that's it, but I've fallen on my feet a bit this year and as I say could possibly save £1000 a month...I think my mortgage rate is 3%

I understand the ISA/savings interest against the mortgage interest debate

I suppose its a personal psychological thing with not having a mortgage and owning your home outright and the peace of mind that brings...

think I may just have answered my own question

just wondered what everyone else would do.. either ditch the mortgage or save

JonnyBravo

Keep saving if £3k is the limit of your savings.
If you do manage to save at £1k/month you'll pay it off in no time but keep that emergency pot. (I'd be growing it a little more before I worried about the mortgage)

WaxiesDargle

cheers Jonny....I just want to be mortgage free, such a big psychological thing for me...but you are right of course, an emergency pot is essential and hopefully this time next year etc etc

dimbo61

Why not do the 50/50% thing and overpay the mortgage by £500 each month and build up savings at £500 a month in 16 months you will have cleared the mortgage and have £10K + in savings!
Good luck

WaxiesDargle

thanks dimbo...there's a thought...cheers for the advice