What are my options? Pay mortgage off?

CvPiper

Been a long time lurker, and rarely post, but would be grateful of advice on my options.

My mortgage has just moved with Barclays take over of ING last year, and we have been overpaying as much as possible.

Currently £35k outstanding, 1.89 + base rate lifetime tracker.

We have in savings (mainly in 123 account to get 3%) just under the mortgage value, approx £31k.

I will get enough together in the next couple of months to cover the mortgage, and think the best option is to pay it off. I currently have no other savings/ISA etc but am a good saver and have paid the mortgage in very quick time.

Are there any better options or investments?
Is it better to not have the mortgage hanging over me?

All advice appreciated,

CP

smifffy1989

It is all personal preference, you can pay it off if you want.

Personally I would take a split approach:

1) Ensure I have emergency fund (cira £5k) easy to access

2) Overpay the mortgage by what I could afford each month

3) Invest the remainder - Funds, Shares, P2P lending making full use of ISA allowance.

This would give me a balance, there is some cash available should I need it.

CvPiper

Thanks for the feedback, I think it is a good idea to have some reserve, so perhaps wait a few more months (6-12) to build up £40k in total for example, then clear it.


With the low rates, I was thinking the ISA allowance etc I should fill as much as I can for the next few years, and although its poor returns up front, I am sure long term they will be much better if I work it by moving when necessary.