To Pay off Mortgage Y/N?.

billesniper

Spiggle wrote: »

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

It really does thank you, I will have a look at first direct as my Wife is a non-tax payer, and because I trust her I may close my other accts, and transfer the monies to her because I'm still paying tax.
Regards. Bill.

getmore4less

Remember ISA is use it or lose it and last longer than the mortage.

What are you mortgage payments and surplus.
if more than the ISA allowance it's not a staight swap.

with a look at both rate you should be able to get them much closer to each other

billesniper

getmore4less wrote: »

Remember ISA is use it or lose it and last longer than the mortage.

What are you mortgage payments and surplus.
if more than the ISA allowance it's not a staight swap.

with a look at both rate you should be able to get them much closer to each other

I'm sorry but I don't fully understand what you are saying, But again It could be me sliping back to thick mode.
Regards. Bill.

Catslovelycats

Billie, I know my parents left 1p in their mortgage unpaid. I think that was something to do with the deeds - though I may be wrong and it might be to avoid penalty fees... If they have to be kept securely, I would have thought it would be cheaper to keep them in secure deposit than be paying interest etc on the £100.

chopper78

Interest on £100 is something like £3.50 a year. Not sure you can get secure deposit boxes cheaper than that

billesniper

catslovelycats wrote: »

Billie, I know my parents left 1p in their mortgage unpaid. I think that was something to do with the deeds - though I may be wrong and it might be to avoid penalty fees... If they have to be kept securely, I would have thought it would be cheaper to keep them in secure deposit than be paying interest etc on the £100.

Thanks for that I'll make a note on that and check It out.
Regards.

newdudoo.com

In the past i have sought advise about weather to save or pay off mortgage
I have been told to both

I would say pay half the mortgage off and put the rest of the saveing into some long term saveing plan

RenovationMan

I'd pay off the mortgage. You don't even need to keep the mortgage open with |£100 (or whatever) to store the deeds or to help if you wish to borrow in the future because there are no paper deeds anymore, they are held electronically at no cost by the land registry and the paper deeds are now meaningless. As far as getting a mortgage it'd be almost as quick to sort out a new mortgage as it would be to remortgage on an existing one - indeed you might not be getting the best rate on an existing mortgage.

Just make sure that there are no hefty redemption fees against your current mortgage then pay it off and look forwards to years of mortgage free living while you rebuild your ISAs or top up your pensions.

Good luck.

billesniper

RenovationMan wrote: »

I'd pay off the mortgage. You don't even need to keep the mortgage open with |£100 (or whatever) to store the deeds or to help if you wish to borrow in the future because there are no paper deeds anymore, they are held electronically at no cost by the land registry and the paper deeds are now meaningless. As far as getting a mortgage it'd be almost as quick to sort out a new mortgage as it would be to remortgage on an existing one - indeed you might not be getting the best rate on an existing mortgage.

Just make sure that there are no hefty redemption fees against your current mortgage then pay it off and look forwards to years of mortgage free living while you rebuild your ISAs or top up your pensions.

Good luck.

Thanks for that info the mortgage has no Early Repayment Charge on It, but I think I would have to pay the Repayment Admin Fee of £50 and the Deeds Despatch Fee of £50.
Cheers.

dimbo61

My first though was to say clear the mortgage in the morning BUT you need to think long term and retirement plans.
ISA,s are long term investments and one of the few TAX free savings vehicles.
Now if you clear the mortgage and use some of your ISA,s will you have the problem of SAVING! more than £5340X "2 ( You and the wife ) ISA,s allowance each year ?
I am working hard to clear the mortgage and then build up savings in ISA,s