Should I pay or should I no?

andrewj42

Nearly mortgage free.
We are in our mid fifties, have paid off the endowment which leaves a 12k Santander standard variable rate repayment mortgage of approx 18 years for which the payments are comfortable.
We have just given up our jobs to drive to Bulgaria to live on a joint income of 15k.
We do have some savings but the question is should we use them to pay off the mortgage or leave them invested in an ISA as a fallback?

TrickyDicky101

If it was me, I would probably maintain the mortgage unless you have current savings significantly over the £12k required to pay it off.

I take it you are not going to Bulgaria on a permanent basis (ie you intend to return)?

Yorkie1

I agree that you shouldn't risk your savings until you know how Bulgaria will work out.

One question which might be relevant, though, is what you're doing with your property while you're abroad - are you renting it out? If so, have you got consent to let on it? It's unlikely to make much difference if you have to go onto a different interest rate given the low amount outstanding, but perhaps worth factoring in to the maths.

Thrugelmir

May be a small amount. But still a debt with 18 years to run.

If I was going to make a life changing decision I would be getting myself into the best possible place financially. Before taking the plunge.

andrewj42

Apologies for not replying to this earlier. To answer your questions:
We will be staying in Bulgaria for eleven months of each year.
Our Uk house will be used by my Brother and Granddaughter, I will be paying the mortgage etc. whilst they pick up half the utilities each.
I am thinking of paying it off as interest rates may be rising.

I was wondering about a fixed rate for as long as possible.
Than you to all for the advice.

dimbo61

So you are paying 4.24% on the £12,000 you owe.
Now if you rent out the property with TENANTS even your own relatives you need to ask permission from your Lender!
You also need Landlord,s insurance and gas safety certificate.
You could reduce your mortgage payment by changing from the SVR to a cheaper deal that Santander will have for existing customers

Voyager2002

dimbo61 wrote: »

So you are paying 4.24% on the £12,000 you owe.
Now if you rent out the property with TENANTS even your own relatives you need to ask permission from your Lender!
You also need Landlord,s insurance and gas safety certificate.
You could reduce your mortgage payment by changing from the SVR to a cheaper deal that Santander will have for existing customers

Sounds as if they are not charging rent, so are the people in the house tenants?