Do I pay my mortgage off?

SINDYGIRL

My partner is terminally ill and insurance company have paid out on his life cover. Should I pay all of the mortgage left owing or majority leaving a small amount left owing? Please help.

boliston

Depends on how much you already have in savings - you need to keep some liquidity for any urgent expenses as unless you have a flexible type of mortgage you can quickly draw on you would want to keep the flexibility of having available cash as long as you are disciplined with spending.

Thrugelmir

Why are thinking of leaving a small amount owing? For what purpose.

Kynthia

You don't have to pay the mortgage off if here's other things you want the money for and you'll be able to afford the mortgage otherwise. What are your reasons for not wanting to pay off the mortgage?

getmore4less

why not use the money to give your partner then best end of life possible then pay off the mortgage with what's left.

SINDYGIRL

I was under the impression it was best to have a mortgage for tax reasons but that could be hogwash and I could have misunderstood!
So am I right in reducing its best to just pay it all off? Apologies for being slow.

SINDYGIRL

I suppose what I mean is there any benefits to having a Morgan as opposed not?

davidmcn

SINDYGIRL wrote: »

I suppose what I mean is there any benefits to having a Morgan as opposed not?

The main advantage in not paying it off is that you can keep the cash in the bank and use it to pay for other things. Otherwise no, there's no advantage I can think of.

AnotherJoe

Not really no assuming you mean a mortgage and not a small but expensive sports car

It would be worth having one is if you have a mortgage at a lower interest rate than your savings. That's very unlikely these days. Or if it was better to put some or all of the money into other areas, a pension for example.

As long as you will still have enough money for emergencies and so on, why not pay it off and then that's one less thing to deal with longer term.

Kynthia

Unless it's a buy to let property, your mortgage has no impact on tax. It's a loan that needs repaying. So you need to decide whether the mortgage is affordable and a low rate and you have better things to spend the money on, or whether paying it off will make your life easier. You could do something in between such as pay off the bulk but use some money for other things while your partner is still here, maybe fun things or necessities for their care and making this time a little easier.

I'm not a broker but perhaps someone in the know could say whether mortgage companies are more flexible when it comes to repaying all or the bulk of a mortgage in this type of case as I know most mortgages have a cap on overpayments?

tlc678910

Hi,
I'm sorry for your situation. Ask your lender about early repayment charges before you overpay or pay off your mortgage.
TLC