Advice needed about paying off mortgage

Miss_Moneysaver

Hi,


Our mortgage has about 7.5 years to go and we are paying more than we should be (only just over £100 more so takes payment to about £830 a month). We have a 25 year endowment due to mature early 2017 and expect £30K at worst. We had intended to use this to reduce the remaining term.
Problem is, my job has moved and I am very unhappy there. It involves a lot of out of hours work and is not practical with two children (10 and 6) when hubby works shifts. I am paying more and more in childcare/travelling so we have come to the conclusion that it is not worth the stress. So, I am hoping to retrain. But, it is expensive to do so.
At the same time as the endowment matures hubby has some access to the lump sum in his pension (railway). He already knows what it stands at and said he could take some out and completely clear the mortgage early 2017. This would mean we would be £900 a month better off (we would save the endowment monthly payment too) and it would ease the pressure. We could then work at quickly re-saving what we had taken out the pension lump sum. 2-3 years max.


Is it worth it?

getmore4less

Interest rate 1.25%, offset mortgage Woolwich

With that rate you should just save the money at a higher net rate not be overpaying.


Even if you don't want to do that just offset and not pay off the mortgage

£61k @1.25% paying £830pm paid off in 6y 5m


If you can find a better rate than the mortgage you could draw down the reserve