Should I pay off my mortgage discussion

RosieTiger

picklebumsky wrote: »

(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

Sort the will as a matter of urgency whatever you opt to do !

fedupwithjunk

I am very lucky having been overpaying my £100000 mortgage I am nearly able to pay it off. BUT my offset mortgage is locked at base rate +1% so currently I am only paying 1.5%.:j

Rather than pay it off I am wondering if I should put £50000 in say a 2yr ICICI account at 4.35%

My mortgage payments rise to £63.75 per month but the ICICI acount will give me £148 after tax

My natural instinct has always been to pay off my debt but does this make sense given my mortgage situation?

puthsardarade

Hi,

I need to withdraw funds from either my ISA or Mortgage which I have overpayed on.
My mortgage is on a fixed rate 5.8% and the ISA is on a fixed rate 5%. Unless I've calculated wrong it would appear that I would be better of withdrawing funds from my ISA, is this correct?

Thanks

chirpchirp

It's a bit more complicated than looking at the rates like that, in my opinion. Short term it's best to do as you suggest. In the longer term, you are receiving tax free interest on the ISA which is compounded. The money in the ISA can't be replaced if you want to add to it at a later date and ISA rates will most likely increase in the future. On the other hand so will mortgage rates. I'm no maths genius so can't do the figures to show how this could differ over time. I suppose it also depends how long your ISA is fixed for.

puthsardarade

The Isa is the newcastle bs 5 year fixed rate deal but it can be withdrawn giving 30 days notice, any suggestions on which option would be best?
Thanks

gagandeeptiwana wrote: »

Hi,

I need to withdraw funds from either my ISA or Mortgage which I have overpayed on.
My mortgage is on a fixed rate 5.8% and the ISA is on a fixed rate 5%. Unless I've calculated wrong it would appear that I would be better of withdrawing funds from my ISA, is this correct?

Thanks

Nettil

I'm still confused on what to do! I am taking out an £80k mortgage but still have money in isas from all previous years (and finding the deposit from elsewhere). Whilst setting money aside to live on for 3-6 months as per general guidance, would I be better leaving previous 10 years savings in isa accounts or put some of it against the mortgage? I still have the opportunity to vary the loan amount. I'm borderline between basic & higher tax.
Thanks

darlie

Thanks for the article it makes interesting reading.
We are moving house bu have also inherited some money so coudl pay off the whole mortgage. We have an ISA on the interest only part of our existing mortgage. This would be our only savings. We also have 2 and half years on a fixed rate of 6.08% on our existing mortgage.
My question is do we pay off the existing including the penalty fee - leaving us mortgage free but with no additonal savings. Or should we overpay for the next 2 and half years and then reevaluate?
My question is sh

yellow33

I'm 56 and a self supporting female, working overseas in a well paid but medium to high risk job. I'm dithering at the moment because by the end of the year I'll have around 70k in the bank and can't decide at all what to do with it. I don't really want to pay off any of my mortgage at the moment because if I end up back in the UK I will need to be sure of being able to finance myself. If I stay here another 18 months, my mortgage will be all but clear and at the moment my flat in London is rented out at an amount that covers all my costs, but doesn't incur tax.

I renegotiated my mortgage just before I left the UK - which was also just before things went bonkers - for a 13 year offset mortgage at .9 above the interest rate - no fixed period - so I'm quite happy about that, but there is a possibility I'd like to buy a property with my brother somewhere, either selling my current flat or keeping it and selling later.

I'm pretty pleased with the fact that I have paid off all the credit card debt I had when I came here 18 months ago and am completely debt free (apart from the mortgage, but I have no personal pension and, apart from some shares, no other assets or savings.

Does anyone have any great advice for me so that I'm not on the breadline when I retire?

jojojo1

I am reaaaaaallly confused as to what to do! I keep reading different things which just get me more confused.

WE have a mortgage of £150k. Property worth 215k. We also own a flat, with no mortgage with approx £150k.

The rent is £800 per month we get, the mortgage is £1200 per month.

Is it worth selling the flat to pay off the mortgage to leave us mortgage free?

We could then put the same money aside... each month?

It would be less pressue too!

Our rate is coming to an end shortly so bit confused!

andysdad_2

jojojo1 wrote: »

We also own a flat, with no mortgage with approx £150k.

The rent is £800 per month we get, the mortgage is £1200 per month.

Is it worth selling the flat to pay off the mortgage to leave us mortgage free?

We could then put the same money aside... each month?

It would be less pressue too!

jojojo
you are paying £400 per month in mortgage payments only never mind associated costs to have a flat you can't use. The value of this is if you think rents or house prices are going up rapidly very soon. I dont see many comments on this forum believing that.
If you sell the flat you will be close to mortgage free and adding the additional £400 would be mortgage free very soon.
You could then re-evaluate your financial priorities back into BTL, Equity investment or just BIG holidays.:j:beer:

Cheers
AD