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Mortgage Redemption Or Not?
mutleythegooner
Posts: 1,422 Forumite
I find myself in the priviliged position that I am able to pay off my mortgage but am not sure if I should or not. I am currently paying £588 a month on an A&L rate of 0.75% above base. The remaining mortgage is £105,000. Paying off would obviously save me 12 x £588 a year or £7056. I don't think I can earn that much interest on the £105,000 if I don't pay it off.
Have I answered my own question or is there something I am missing?
Have I answered my own question or is there something I am missing?
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Is there a redemption fee?I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Brilliant mortgage rate. Wonder if you're doing the most useful sum/calculation. Could your lump sum earn more after tax than the interest rate you are currently paying? That's the important calculation. And not forgetting to use up your ISA allowance for tax free saving.0
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