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Paying off my Mortgage
Mele
Posts: 7 Forumite
Im considering paying my mortgage off early and would be grateful for any advice. I have a mortgage outstanding of approximately £53,000 but have savings which are roughly equivalent to pay it off.
In addition to early repayment charges by my current lender what other charges should I consider before making a final decision?
The property has been valued at £165,000. I was intendeing to then use the property as equity towards either buying a second property in the future possibly.
I look foward to receiving your thoughts.
Many thanks
In addition to early repayment charges by my current lender what other charges should I consider before making a final decision?
The property has been valued at £165,000. I was intendeing to then use the property as equity towards either buying a second property in the future possibly.
I look foward to receiving your thoughts.
Many thanks
0
Comments
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have you considered an off set mortgage. As you have roughly the same same amount in savings, an offset mortgage can mean that you are not paying any interest on your mortgage. Obviously, you will need to weigh this against the lost of interest on your savings. if the interest on your mortgage is more than the interest earned from savings, then you need to consider an offset mortgage.
Just make sure your look into the admin charges of remortgaging.
This is not the only options as there are plenty. If you can earn more interest via isa etc, then any interest you have paid back on the mortgage is offset. Then you can pay the mortgage off (if you want to) when the early replayment charges period expires saving you more money0 -
Really useful advice
Many thanks:T0 -
We are considering paying off our mortgage. We have the means to do it due to an inheritance, and are currently paying more interest on the interest than are receiving from investing the cash. Can anyone advise what to do with our endowments, that have several years left to run. Is it best to cash them in or keep paying in till they mature? They would not achieve the mortgage anyway (unless we died!), one is with profits. Thank you.0
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