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Pay mortgage off or not?
GCM44
Posts: 1 Newbie
Hi, wondered if anyone could help me with some practical advice.
We are in the lucky position to be able to pay off our mortgage with ISA money a few years earlier than the full term. The ISA has finally showed that it is increasing value as for a few years we appeared to be losing money on it. We intend to move later this year and are likely to need to re-mortgage to a higher level. The question is do we pay off the mortgage now or keep the funds for a higher deposit. We are paying a rate of 2.5% interest which is a really good figure (I think) but it is variable and if we move we are likely to want to fix it. I have read quite a few of the threads and MSE info guides and mostly it seems a good idea to pay it off, however the ISA could make more money if we leave it where it is (again I think they start accumulating better in the later years) and continue paying the low interest on our current mortgage until we are ready to buy and re-mortgage. Any advice/thoughts welcome. Thanks.
We are in the lucky position to be able to pay off our mortgage with ISA money a few years earlier than the full term. The ISA has finally showed that it is increasing value as for a few years we appeared to be losing money on it. We intend to move later this year and are likely to need to re-mortgage to a higher level. The question is do we pay off the mortgage now or keep the funds for a higher deposit. We are paying a rate of 2.5% interest which is a really good figure (I think) but it is variable and if we move we are likely to want to fix it. I have read quite a few of the threads and MSE info guides and mostly it seems a good idea to pay it off, however the ISA could make more money if we leave it where it is (again I think they start accumulating better in the later years) and continue paying the low interest on our current mortgage until we are ready to buy and re-mortgage. Any advice/thoughts welcome. Thanks.
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