Pay off mortgage or switch to offset and hold mortgage amount in savings

dotdash79

As per the title it looks like in the next 12 months I'll have the money to pay off the mortgage, but I've been thinking that perhaps I should switch to an offset and just hold the balance in the savings account.

I want to change career path in the next few years and would have to take a pay cut for a few years. Also I might have to take time out of work for major surgery depending on how things go.

I would like the safety of having no mortgage, but I like the idea of being able to access an amount of money incase of trouble or if an opportunity presents it self.

Both options are cost neutral apart from solicitor fees and application fees.

Would would you do?

dimbo61

Cost neutral ?
You have a mortgage with an outstanding balance and once you have paid that you are mortgage free.
If you move lenders and take out a new offset mortgage you have fees and other costs end of !
I would just pay off the mortgage and then build up savings

stator

If you don't have much savings then keep the mortgage. Terrible accidents/illnesses can come on very suddenly. Certainly don't use up all your savings just to pay off the mortgage and be left with no savings.

dotdash79

I will have a decent amount of savings as well, oh well I'll make a decision when it comes to the time. I have a ERC anyway for another 2 years so I'll review it then.