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Should I pay off the repayment part of mortgage?
nsp33
Posts: 213 Forumite
We currently have part repayment and part interest only on our mortgage.
We now have enough money to pay off the repayment part, I am wondering if it would be worth our while paying off the repayment part of the mortgage, or whether to pay a bit off of the interest only part - or even just to keep the cash.
Does anyone have experience or independent advise please.
We now have enough money to pay off the repayment part, I am wondering if it would be worth our while paying off the repayment part of the mortgage, or whether to pay a bit off of the interest only part - or even just to keep the cash.
Does anyone have experience or independent advise please.
Trying to regain my comping mojo
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Comments
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What are the interest rates for each part?0
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Forgot to say that it is an offset mortgage - Interest rate is 1.25%
We are looking at moving our money/current account to a different bank tho (possible Santander)
We reduced the interest only part a few years ago as endowment was ment to cover £30k, but obviously won't - we reduced that part to £16,500.Trying to regain my comping mojo0 -
If it's all on 1.25%, I wouldn't be overpaying anything. You can easily earn a higher rate than that on savings.0
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TrickyDicky101 wrote: »...dependent on income and marginal rates of tax.
Even 3% at 40% tax beats it.0 -
I'm not arguing the numbers but clearly tax effects need to be considered. Admittedly as does flexibility and probably a whole host of other considerations personal to the OP0
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