Choices!

LovetoSave_2

Hello and Merry Christmas to all!

I'm a long time viewer, first time poster to MSE.

I'm looking for some advice...

wife and i have house valued about 125k with mortgage of approx 20k oustanding to Jan 2020. Our fixed term deal expired in November and we are now on nationwide's SVR (2.5%) and are paying £240 a month.

Fortunately enuff (touch wood) we're in pretty solid employment and due to pay rises over the past 18 months or so, we reckon we have between £500-£750 a month to either put into savings or to pay off mortgage... meaning we could have the mortgage paid off by Jan/Feb 2014.. 6 years early.

We have full cash ISA's for 11/12 but wife wants to keep these as emergency funds and reinvest again in april, and having had a look about i think best savings options are paying about 3.5% (let me know if i've missed any good deals!?!).

I understand that putting it in the savings account is better option on paper but only by 1%... £60 to £75 a year. So my question to the mortgage free people out there.. is knowing your paying it off early worth more than that?

Cheers!

dark^knight

Hi,

Yes, I would say it is worth it, as it means:

1, You own the house outright, and no one can take that away from, no matter what.
2, You don't have any debts, and any spare money can be invested for the future.

Sepa74

I would be tempted to fill up your ISA allowance each year as the income from the ISA will be tax free in future years, a nice little addition to your income once you are retired. Then you will be paying tax on any savings after that, so it's probably better to pay off your mortgage.