Pay off Mortgage or Save

oldmanmille

I have a £155k mortgage - £100k of that is interest only. I have 9 years left so means I will have a balance of £100k to pay at end of term.

I have that £100k now but uncertain what to do.

Should I pay that £100k and have just £55k mortgage to pay for 9 years?

Or

Should I pay the £100k, pay the £1k month still this reducing the term?

Or

Should I carry on paying the £1k mortgage and invest the £100k?

Or

??

Any advice / options available would be appreciated as my head hurting!!

Thanks...

getmore4less

interest rate will be a major factor

AnotherJoe

Impossible to advise without knowing the interest rates in the mortgages and your cash.

oldmanmille

Thanks but wish I understood what you mean?

oldmanmille

Ah ok got you - 3%

oldmanmille

Not got cash in any investment yet just in bank

oldmanmille

Sorry it's 4.49%

AnotherJoe

Are you getting 3% on your cash and your mortgage is 4.9% and both mortgages are the same interest rate ?

Ps Also is there any early repayment penalty or overpaymeant limits, on either of the mortgages?

getmore4less

As well as considering paying of some of the mortgage you should look at reducing your rate these days 3% is high 4.49% very high.

Should be able to get under 2% maybe even as low as 1.5%

if in a penalty period you will need to consider timings.

You may also what to consider your long term plans, mortgage free is part of retirement planning.

you may want to look at the best rate the on the mortgage and what the minimum you need to overpay to get that (LTV).

If anything left look at the options pensions, investments.


One option might be to look at offsets, this way you can get your mortgage interest down while you decide what to do long term.