To Pay off Mortgage Y/N?.

billesniper

Hi. I don't want to appear as thick, but I can't get my head around the Mortgage Vs Savings thing, and hope someone could give thier opinion.

We have a Mortgage with the Halifax of £33000 outstanding on a standard variable rate of 3.5% with thirteen years to run.

We have two Isa's with a total amount of £49000 at an average rate of 2.75%. We have further savings which would be sufficient (as a buffer) for our needs even if we pay the mortgage off.

My question is would it be better to pay off the Mortgage in total now? given the interest rates I have quoted.

Thanks for reading this.
billiesniper.

McKneff

?????

It is posted, what else do you need to say, just hit the edit button

Thrugelmir

billesniper wrote: »

My question is would it be better to pay off the Mortgage in total now? given the interest rates I have quoted.

If the money is not required for any other purpose then yes.

billesniper

McKneff wrote: »

?????

It is posted, what else do you need to say, just hit the edit button

Thank you I know it's posted now but I had a problem getting the original one to post.
Regards.

McKneff

If your paying more interest on your mortgage than you are getting from your savings then yes defo pay it off, its a brilliant feeling being mortgage free.

Can you shop around and get a better rate thn 2.5 on your Isas, Im getting 3 with the Halifax and will shop around again in April

Catslovelycats

If it was me (I so wish!) I'd pay it off and look for an ISA with the best rate foe my future saving.

originalmiscellany

Pay it off, be mortgage free and then continue to save hard but be in the knowledge you own your house and you won't have to pay banks any more interest.

Spiggle

Absolutely yes! And then have a really good hunt for the best rates for your remaining savings. You'll be in the fortunate position of owning your home, not paying anyone interest and have savings as a cushion for any unforeseen needs in the future.

And you'll have the whole of your mortgage payment to save every month. It might be worth you looking at good regular saver accounts such as the first direct one which pays 8% gross though you need to open their current account too. My personal experience with them is that they are very good.

Hope that helps,
Spigs

billesniper

McKneff wrote: »

If your paying more interest on your mortgage than you are getting from your savings then yes defo pay it off, its a brilliant feeling being mortgage free.

Can you shop around and get a better rate thn 2.5 on your Isas, Im getting 3 with the Halifax and will shop around again in April

Thanks for your advise McKneff, I like you have an Isa with the Halifax at the rate you are getting, but my Wife will not move Isa with the Nottingham BS,so the 2.5 is an average.
Regards.
Bill.

billesniper

catslovelycats wrote: »

If it was me (I so wish!) I'd pay it off and look for an ISA with the best rate foe my future saving.

Thank you for that.
Regards.
Bill.

billesniper

originalmiscellany wrote: »

Pay it off, be mortgage free and then continue to save hard but be in the knowledge you own your house and you won't have to pay banks any more interest.

Thank you for your reply. Monday will be a day of action I think. Just one other thing, Is it better to leave a small amount say £100 so that the Halifax will be storing the deeds, or pay the discharge fee and store them elsewhere?
Regards. Bill.