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To clear mortgage or not?
rumncoke
Posts: 233 Forumite
Our situation. Just under 9k left , fully offset so not costing us anything. Fortunate to have much larger than average savings pot.
Trying to decide whether to just clear it or just leave it to run. Not likely to need the cash from the offset account. My head is saying to leave it but heart is saying pay it off. I remember the wonderful feeling of being MF before we moved here nearly 7 years ago.
Thoughts anyone?
Trying to decide whether to just clear it or just leave it to run. Not likely to need the cash from the offset account. My head is saying to leave it but heart is saying pay it off. I remember the wonderful feeling of being MF before we moved here nearly 7 years ago.
Thoughts anyone?
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Comments
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Have a look at the interest rate on mortgage versus the savings. If the mortgage interest rate is more than (or maybe even equal to) the savings, pay it off. If the savings are earning you more then leave it be.Shrinking my mortgage!
Nov 13 £166,000
Jan 17 £142,9000 -
I was in a similar position with FD, just cleared balances on mortgage accounts from linked accounts.
Have left the mortgage facility open (and can do for next 20 years) should I need it and just cancelled regular mortgage payments from current acct as nothing to pay off.
If I go overdrawn across all accts then interest just gets charged to current acct.0 -
What an amazing situation to be in
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Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** in ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger.
One debt remaining. Home improvement loan. 19months left.0 -
Notfarfromtheborder wrote: »I was in a similar position with FD, just cleared balances on mortgage accounts from linked accounts.
Have left the mortgage facility open (and can do for next 20 years) should I need it and just cancelled regular mortgage payments from current acct as nothing to pay off.
If I go overdrawn across all accts then interest just gets charged to current acct.
Thanks for that. Didn't realise that mortgage facility would stay open. Think I will speak to the bank next week & do the same if possible.0 -
We are also with FD and small offset mortgage left with no interest
We decided to keep the mortgage open just in case we need to borrow any back because it's the cheapest/free way to borrow and we don't even need to ask or fill out forms or use savings
Im glad we did because I took a shine to a new Merc last august
and my savings were locked in to a savings account until January so I borrowed it back of the mortgage for no interest and paid it back when my savings account maturedWhen will the "Edit" and "Quote" button get fixed on the mobile web interface?0
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