Pay off my mortgage or ........

Dave_xke

Hope this is the right place to post this question?

4 years ago at 50 I had a pension pay off of £50K I put a large extension on the house using £20K of it, the rest went into ISA's and a bond.
The bond is up and so is one of the ISA's so last week we put the bond in with the ISA so we have £17.5K in it, locked away for 4 years at a measly 2.2% rate.
We have 3 more ISA's due next year paying 4.4%, they have around £6k in each.
I also have other savings, a decent well paid secure job and a pension of £900 a month taxed at 40%.
My mortgage is now £33K @2.1% which costs me £325 a month but we pay £350 a month.
I have another 11 years to go to pay off the mortgage but with the over payments this should end sooner.
My question is should I wait until next year and pay off my mortgage using all my ISA's and save the mortgage money I'm paying now in an ISA or invest the ISA's again?
I am clear of any penalties with paying the mortgage off so no problem there.

I am leaning to pay my mortgage off however my wife thinks the mortgage isn't a problem and likes the thought of being surrounded by money:j We have other savings and we have no other debts at all.
Hope the above doesn't make me look smug, I know a lot of people are really struggling with debt so it's just the facts.

Regards

Dave

donemedosh

Hi
Paying off the mortgage may make a big dent in your money but the interest charged on your mortgage is greater than you are getting on savings. We paid off our mortgage a few years ago & it is the best thing we did. We then saved our payments even though the savings rates are rubbish. But if you save £350 a month for 10 years that's £42000 & your mortgage is only for £33000. Plus the interest rates WILL go up at some time. Best advice is do the maths see what you pay out see what you can save by paying off early such as life insurance (part of the mortgage repayment) mortgage protection & also the interest you would pay over the next 10 years of your mortgage. Hope this helps

Dave_xke

Thanks for the advice, you seem to echo my thoughts.
For info I don't pay any mortgage protection or have life insurance as such, I am insured for 4 times my salary with my company which is free.

jodles16

I would agree with donemedosh, sadly interest rates for savings are pants and paying off the mortgage would be a good financial decision, plus once its gone you can save up what you would be paying and Im sure you will get a nice lump sum soon enough! And it doesnt make you sound smug at all, well done on getting so far and making good choices!

Jodles