Time to Pay off Mortgage?

Liz_the_Whizz

We currently have an offset mortgage of £18k with Intelligent Finance (IF).

I know the old received wisdom was not to pay off your mortgage as there was tax relief back then and also you could make more money from investing rather than paying off the loan.

But is this still true? I'm not a great fan of IF so would be quite happy to pay off the mortgage and dump them.

Any thoughts anyone?

Xbigman

There's no more tax relief so thats not a factor, although I think you realise that.

You can make more money from investments than the mortgage costs but you need to be financially secure overall to make it worth the risk
But if you have an offset then you are not actually investing, just neutralysing the mortgage. As long as your mortgage costs you absolutely nothing then it really does not matter what you do. If it does have a small cost then pay it off and save the money.
Regards


X

benood

Make sure your offset cash is going into cash ISAs - even though you will see no immediate benefit they will give you more options in the future should you ever have a lump sum with which you could pay off the mortgage - at that point you would start earning tax free interest on the cash isas. Otherwise I agree with Xbigman.