to pay off or not pay off?

love_lifer

Please excuse my denseness, but I am in the forunate position of having only £10k left on my mortgage (ive been paying into it donkeys years), term due to end 2017. Im unsure of what to do next.

interest rate on the mortgage is 2% tracker. i have isas, which I'd rather not touch as Im single and will have a small pension, and savings of about £4k in 2 accounts, which i dont know the rates of currently but am finding out. also have an endowment due in may- will get about £4k. should i shuffle various pots of money together and pay the mortgage off? i have a student loan whcih i pay thru salary each month- thats about £7/8k, from 2007-9. No other debts. Am considering moving house, but not definite. Wherever i move I'll have to pay more for my next home as currently i live in a rough area.

Anyway, if anyone has wise words I'd be most glad to hear them

brenda10

love_lifer wrote: »

Please excuse my denseness, but I am in the forunate position of having only £10k left on my mortgage (ive been paying into it donkeys years), term due to end 2017. Im unsure of what to do next.

interest rate on the mortgage is 2% tracker. i have isas, which I'd rather not touch as Im single and will have a small pension, and savings of about £4k in 2 accounts, which i dont know the rates of currently but am finding out. also have an endowment due in may- will get about £4k. should i shuffle various pots of money together and pay the mortgage off? i have a student loan whcih i pay thru salary each month- thats about £7/8k, from 2007-9. No other debts. Am considering moving house, but not definite. Wherever i move I'll have to pay more for my next home as currently i live in a rough area.

Anyway, if anyone has wise words I'd be most glad to hear them

Hello love lifer, well done, you are getting there. I am no expert just someone who has a variable mortgage(can pay it off anytime without penalties-of course I had to pay a higher rate when I took out the mortgage.) Anyways I have enough to pay off the last 36k but as interest rate on mortgage is 1.5% it pays me to save in a 4.2% bond(5 year) that I took out through Martins money tips. You will have to work out if you can make money(after tax) on your savings and there is a calculator on martins website re to pay off a mortgage or not to pay.

Good luck. I make 136£ month having money in savings account at 4.2% Newcastle 5 yr bond(after tax is paid). If my mortgage interest rate rises it will take me 6 months notice before I can access the money. This is just my personal situation.
Brenda
Martin is my hero, saved my mind and saved my soul :money:

hamster2013

i am all for mortgage free life, if you can overpay without penalties, start off with that and instead of touching your savings, set yourself a target of completing the payments over the next 24 months
10k over 24 months is around £200 overpayment every month at that rate, if its achievable, might be an option