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£15000- Pay off mortgage,off set on new mortgage or keep in savings?

£15,000 :beer: to either ;
pay off our £23000 mortgage over 20 years-fixed at the moment til april 2008 £400 fee for paying off early so we would wait

or get new mortgage in april and offset money (savings) against mortgage

or keep the money saved "just in case " as we will never see money like this again!

I would appreciate peoples views and ideas
I know by paying it off the mortgage and keeping payments the same we would be mortgage free in 5 years :T and I like the idea VERY much but the thought of never having savings like it scares me!

Comments

  • Lazy_Runner
    Lazy_Runner Posts: 335 Forumite
    If you have no savings at the moment, put the equivalent of 3 - 6 months net salary into a high interest savings account. So if things did go pear shaped, you would have a fall back position.

    Put the rest into the mortgage.

    When overpaying the mortgage, ensure the lender reduces the term instead of the interest payments.
    If you are at a poker game and you cannot figure out who is the patsy then guess what...you're the patsy - Warren Buffet
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