Should I pay off my mortgage discussion

lizbath

hi
am saving 100 per month in shares isas should i instead pay this towards my mortgage

rodg

Help please!!! I have been made redundant. I have paid off all our debts except the mortgage which currently stands at £80k and is a tracker for life at 0.19% above base rate, with no repayment penilities. My wife and i have taken out our full allowance in cash isa's and have around £20k left to either invest or put to the mortgage. I am in my 50's we have 14 years left to pay. Shall i put the money towards the mortgage or invest it??? Please help.

Thanks Dodg

Welshlassie

rodg wrote: »

Help please!!! I have been made redundant. I have paid off all our debts except the mortgage which currently stands at £80k and is a tracker for life at 0.19% above base rate, with no repayment penilities. My wife and i have taken out our full allowance in cash isa's and have around £20k left to either invest or put to the mortgage. I am in my 50's we have 14 years left to pay. Shall i put the money towards the mortgage or invest it??? Please help.

Thanks Dodg

Do you have a new job lined up? Do you have other rainy day savings 3-6-9 months outgoings is recommended?
If the answer to above is yes I'd be tempted to see what long term fixed bonds are out there 1 to 2 years length as you should be easily able to beat your mortgage rate currently after tax. If you can't then I'd suggest paying it off your mortgage.

Good luck

rodg

Thanks for the reply. at present I do not have any job lined up I have taken my pension early so i have a small income and with my wife salary we can manage okay. The only savings we have are the cash ISA's and we have last year and this years full allowance invested. I am planning for the worst that I may not find a job with my old salary and i may just get part time work.
Dodge

mama

Hi there. My mortgage fixed rate of 5.39% will end on 30th June, dropping to SVR of 3.5%. I want to do a 16-month 0% 'super-balance transfer' to pay the 10% overpayment allowed, but the cheapest is 4% fee. IS it worth it? I borrowed 114k and still have 110k left to pay

determined1_2

mama wrote: »

Hi there. My mortgage fixed rate of 5.39% will end on 30th June, dropping to SVR of 3.5%. I want to do a 16-month 0% 'super-balance transfer' to pay the 10% overpayment allowed, but the cheapest is 4% fee. IS it worth it? I borrowed 114k and still have 110k left to pay

Stoozing Profit Prediction

Data entered by the user
Balance to be transferred (pounds)...... 11000
BT card interest rate (%) .............. 0
Introductory period (months) ........... 16
Balance Transfer Fee (%) ............... 4
Maximum BT Fee (pounds)................. No Maximum
Min Monthly Payment Type ............... Fixed
Min Monthly Payment Amount (% or pds) .. 25
Savings interest rate (AER %) .......... 3.5
Tax rate ............................... Not taxed or offset

Your Results
Balance Transfer Fee paid (pounds)...... 440
Stooz pot balance at end of intro ...... 11107.58
Credit card balance at end of intro .... 11040
Gross Profit before tax on interest .... 67.58
Tax on interest to be paid ............. 0
Your Profit (pounds).................... 67.58

Created using the Stoozing Calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission.

What if the SVR went up?? The profit above is minor for the risk invovled IMHO. If you lost your job, you would still have the CC to pay.

You also need to repay the CC at the end of the 16 month 0%.

hope this helps

mama

Thanks. My other dilema is this: My lender is willing to offer a 5yr fixed at 5.19% or tracker at 2.79% above base rate for 5yr when my current 2yr fix ends on 30th June, both with a £1250 fee. I'm thinking of going on the svr of 3.5% from July for a while, and make some overpayments with the reduced payment. I'm not at the 'margins' so I don't mind whether tracker or fixed, but I need some advise as to what best to do. Lender believes there is a case of negative equity now, so I will find it difficult re-mortgaging. Do I risk with the svr till rates begin to go up and then move to tracker/fixed, by which time the rates will be higher? Will I be better of with tracker or fixed considering the possible rate changes forcasts?

Moose_shooz

Hi, I have a small mortgage (about 22k) and enough savings to pay it off. My question is this; we're looking at moving to a larrger more expensive house in the next few years; should I keep my money in savings as a deposit or pay off the mortgage on the current property?

Any suggestions? Ta

StuartGMC

Moose_shooz wrote: »

Hi, I have a small mortgage (about 22k) and enough savings to pay it off. My question is this; we're looking at moving to a larrger more expensive house in the next few years; should I keep my money in savings as a deposit or pay off the mortgage on the current property?

Any suggestions? Ta

1) Firstly ensure you have your emergency funds of 3-6-9 months expenditure
2) What other costs will you face in the interim for things like replacement cars, holidays, replacement of white goods.... etc?
3) Remember you will incur fees to move, but I guess these can be saved closer to the time?
4) Finally, in essence it is price to change you need to consider provided that you clear the mortgage debt; whether it is better to have the money in the equity now vs retained and saved will depend upon your interest rates, and if you believe that house prices will continue to fall or not.

picklebumsky

I'm in the situation whereby I have had my mortgage fully offset for the past 3 years (so not paying interest) and have built up substantial savings alongside this (an so don't feel i will need to draw on the offset amount in future).

My question is, are there any benefits to keeping my mortgage or should I just pay it off?

I'm considering paying it off:
(1) As I'm having to split money across several Banks to make sure I'm covered below the 50k per institution. Fine, but is taking more and kmore management.
(2) I need to draft my will, and think it may make things clearer if I pay off the mortgage should anything happen (i have a young son and bump in progress!).

Any advice welcome!

Anna