Paying the mortgage off?

dfons

Hi all,
I have got £33,454 left on my mortgage and I am currently overpaying my monthly instalments by £633 to a total of £1000. I'm with Scottish widows on a 1.25% tracker. My tenants pay £500 a month so I top it up by another £500. According to my calculations, if the interest rate remained the same I would be finishing paying my mortgage in a little bit less than 3 years.
I also have £11,777 on an ISA plus another £17,000 in a savings account. The interest rates for both the ISA and the savings account are very low, currently getting about £26 monthly all together.
My question is, would I be better trying to pay the remaining of the balance of my mortgage off by using my savings or it is better to carry on the way I am.


Thanks a lot for your help.

Alchemilla

Hello!
It is standard financial advice to have 6-12 months' outgoings in easy access in case of redundancy or similar.

Would you have an emergency fund if you used your isa and savings?

Might a mixed economy be more prudent?

dfons

Many thanks Alchemilla. No I don't, these are all my savings. However my wife also has a couple of ISAs and some extra savings. We are lucky to be working abroad at the moment on a very good package, so we can save a lot every month.

comeandgo

You say tenants so you rent it out. You can use the interest costs in your mortgage to reduce your taxable profit so you may need to take this into consideration too.