Savings versus mortgage

dollypeeps

I'm lucky to be in a position to pay off my mortgage.

I have a good mortgage product in that it's a tracker with HSBC. The interest rate currently is 2.49%. I am able to pay off whatever I want whenever I want as long as I pay the minimum each month.

As at 31/12/2013 my total assets were £30873.44 and my mortgage was £16300. I don't have any other loans etc. included in the £30k is the basic bank accounts for all bills emergency fund etc.

I am going to need new windows in the near future as well as the back and side external walls rendered and waterproofed etc.. They haven't been done for about 25yrs and both the windows and the render are starting to fail. This will cost quite a lot I'm sure.

My question is would you pay your mortgage off?

Or would you keep paying the mortgage with small overpayments like myself and use your savings to pay for the work?

Thanks Karen x

The_Moo

I'd keep the savings and try hard to add to them, both for longer-term maintenance plans and for an emergency fund if eg your boiler breaks down.

How would you finance any repair works if you used the savings to pay the mortgage down? Any credit you took out would be at far higher rates of interest than your mortgage.

dollypeeps

Thank you moo. I am thinking along those lines too. Any further finance would be much higher.

I am currently saving more towards this maintenance. I am hoping to get it done within the next 5 years or so. I want it to be " a once in a lifetime job" so am holding off as long as possible but I have water tracking into the house with these current weather conditions. I think the render is failing.

Karen x