yes or no

poshman

hi guys, I am debating whether to pay off my mortgage

I owe 20K and its due to be paid up in 3.5 years time when i will be 64 years old my endowment part of the mortgage matured with a shortfall, anyway i havent paid any off the mortgage so the 9K is gaining a little interest in the bank so with my other savings i could scrape up 20K and have about 64p left !!

so what do you think ? pay off the mortgage and save the monthly £560 for another 3.5 years = approx 23K humm would i have the disciplin to save the £560 every month is another question

monthly payments are £567 ( overpaying making it £600 )
int 4.49% cheers P M

tjp70

If paying off your mortgage would leave you with an emergency savings fund of 64p, then I would keep the mortgage going for a little while longer.

RosieTiger

Generally speaking, you needs funds to cover emergencies, be it 3, 6 or 12 months worth of bills depending on your attitude to the risk of losing your income and regaining another. After that, the decision is generally based on the interest rates - do you earn more interest by keeping it in savings than it costs you on the mortgage, or the otehr way round.

dimbo61

The interest rate on the mortgage is 4.49% I bet you 64p that you are not getting that from your savings after TAX so clear the mortgage ( if no ERC,s ) and next month start saving at least £600 a month in cash ISA,s regular savers ETC

gratefulforhelp_2

What's you income like? Could you get a zero percent CC and stick it on that? Might be painful for a year/year and a half, but then you would be FREEEEEE.

Sepa74

I would be inclined to use your savings to pay off the mortgage BUT keep enough out for an emergency fund.

That way you are minimising the total interest you pay, but still have a safety net.

The other thing to consider is your retirement plans. Have you considered the impact of reducing your savings and / or paying off the mortgage early on retirement?

Retirement planning is complex, so you may find it best to talk to a financial advisor (or two!) who can take a holistic view of ALL your finances not just those relating to savings / mortgage.

poshman

thank you all for your replies, ive had a closer look at my mortgage details.....

i havent received another statement yet but i owe as from 1st July

its weired ive got 2 parts..

part 1 loan 14,000 term of loan 4 years

part 2 loan 5,470 term of loan 2 years

it is a fixed rate of 4.49% but it would have changed to 2.50 % on 1st Sept variable rate

so I owe £19, 470 and I pay £550 + £50 overpayment = £600

maybe i will just plod along for another year but it would be nice to pay it all off on my 63rd birthday in 30 months time

retirement... had a look at my pension in June 2015 I would get £28,800 a year or another option which is more appealing £18,600 a year and £124,000 lump sum