£150000 mortgage pay off or not

M20DAL

I have a £150000 mortgage on interest only which i pay £720.00 a month for i could just about pay this off but would have no savings left but would have an extra £720 a month

wondered what people thought pay it off or not

my house is worth about £350000

nickelodeon

Are you saying you have £150,000 in savings? What interest rate are the savings at and what interest rate is the mortgage at?

Shineyhappy

I guess that would be dependant on whether your savings were earning you more interest that you were paying on the mortgage?

There are loads of discussions like this on the Mortgage Free Wanabe boards that you may find more helpful

scottishsuz

I'm the cautious type, I would personally wait until I could comfortably pay it off rather than try when you can just about do it. But weigh it up againt how much interest your saving aswell. If your saving a good whack of interest it might be worth the risk.

You could always get a cheap rate credit card just for any emergencies that crop up before you get your savings healthy again?

M20DAL

im probably earning slightly lower than im paying but you end up spending the interest with nothing to show just thought it would be nice to clear the mortgage can any one see a downside

Crown

Martin mentioned this exact topic in last weeks Money Mutterings Video what should be able to be found on the site somewhere. You receive a link to his videos if you are signed up to the newsletter.

One thing he said what madea lot of sense is remember if you pay your mortgage off its like earning whatever your interest rate is AFTER tax. Remeber if you have a normal savings account they pay you interest after the Tax is deducted.

Martin expalins it a whole lot better than I can and thats why he's the Moneysaving Expert and Im a Debt Free Wannabe! Take a look at his Article on the main site

scottishsuz

The only downside I can see is that you won't have a fall back fund if something goes wrong, loss of job etc. But the feeling of being mortage free, that would be so good!

Crown

Did you mean to post this on the Debt Forum or was it meant o be in the Mortgage free Wannabe Forum? Maybe a Mod can move it for you as you may get a better repsonse from that forum.

I look forward to the day I have £150,000 in savings and pay my mortgage off

rayday2

I would pay the mortgage off without hesitation you could always put say £500 a month into savings and build savings up but then you are always earning interest rather than saving and earning. Much less complicated!

Imelda

If that were me, I would pay off a lump sum, say £100k, so I still had a good buffer in the savings account should the worse happen but still keep the monthly mortgage payment the same so you'll be paying the rest off quicker.

M20DAL

sorry didnt know what forum just wanted people views