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Should I pay off my Mortgage?

I'm managing to save about £2k a month at the moment, which is building into a nice amount (saving it is ISAs and Premium bonds at the moment).

Ideally, it would be great to be mortgage free - I've got two houses with a mortgage on each. We rent one of the places out that covers the mortgage payment and we've only got a few years left so I'm happy to let that carry on until it's paid off.

My question is about the house that we live in. I managed to get a lifetime tracker of 0.3% above base (I know, very lucky) so we are only paying 0.8% at the moment.

It seems silly not to make the most of the interest rates and save rather than pay off the mortgage - anyone have another angle on it?

Cheers for any responses!

(Posted this elsewhere by mistake!)
Original Mortgage £68456.47

Now £53521.10 - Mortgage to be cleared April 2014 (32 months and counting!)

Comments

  • If you can get > 0.8% on your savings, i'm sure it must make sense to keep them in the bank rather than pay off the mortgage
  • If you can get > 0.8% on your savings, i'm sure it must make sense to keep them in the bank rather than pay off the mortgage

    Yeah, that's what I'm doing but just wondered if I'm missing a trick on something?
    Original Mortgage £68456.47

    Now £53521.10 - Mortgage to be cleared April 2014 (32 months and counting!)
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    No, you're not missing anything.
  • No, you're not missing anything.

    Pointless making overpayments then?
    Original Mortgage £68456.47

    Now £53521.10 - Mortgage to be cleared April 2014 (32 months and counting!)
  • When inflation is running at over 4% I'd say so, yes.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    When your mortgage rate is 0.8% I'd say so, yes.

    For others paying 4%, 5%, 6% then overpayments are great value.
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