We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Advice on whether to pay off mortgage

tirosh
tirosh Posts: 22 Forumite
in Mortgages & endowments
Hi There,

I currently have a £150k interest only mortgage. In order to pay off the loan I have been putting money into a Shares ISA and as it currently stands there is enough built up to be able to pay it off.

The question I would like to ask is should I pay this off with what has been built up or is there any advantage to keeping the mortgage going and carry on adding to the pot?

Thanks.
«1

Comments

  • ACG
    ACG Posts: 24,682 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Is the interest on the isa higher (after any taxes due) than that of the mortgage?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • tirosh
    tirosh Posts: 22 Forumite
    Yes, currently it is higher.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    tirosh wrote: »
    Yes, currently it is higher.

    How much risk are you happy to expose the capital too though. Markets can move extremely rapidly.
  • tirosh
    tirosh Posts: 22 Forumite
    Agree, that's why I was asking.

    Are there any additional benefits to keeping a mortgage going?
  • Mr.Generous
    Mr.Generous Posts: 4,013 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    pay it off, the satisfaction is worth it. Then continue to build your savings but maybe with a bigger pension bias. Well done.
    Mr Generous - Landlord for more than 10 years. Generous? - Possibly but sarcastic more likely.
  • tirosh
    tirosh Posts: 22 Forumite
    Mr.Generous wrote: »
    pay it off, the satisfaction is worth it. Then continue to build your savings but maybe with a bigger pension bias. Well done.

    Thanks Mr.Generous, this was my thinking too but wanted to get some more thoughts.
  • edwink
    edwink Posts: 3,006 Forumite
    Part of the Furniture 1,000 Posts Homepage Hero Photogenic
    Mr.Generous wrote: »
    pay it off, the satisfaction is worth it. Then continue to build your savings but maybe with a bigger pension bias. Well done.

    Excellent advice Mr.Generous

    Well done from me too.

    We have done exactly that and as we have not got a mortgage to pay every month our savings obviously build up a lot faster. Well worth doing in my opinion. Go for it I say!
    *3.36 kWp solar panel system,10 x Ultima & 4 x Panasonic solar panels, Solaredge Inverter *Biomass boiler stove for cooking, hot water & heating *2000ltr Rainwater harvesting system for loo flushing *Hybrid Toyota Auris car *RIP Pingu, Hoppy, Ginger & Biscuit *Hens & Ducks* chat thread. http://forums.moneysavingexpert.com/showthread.php?t=5282209
  • tirosh
    tirosh Posts: 22 Forumite
    edwink wrote: »
    Excellent advice Mr.Generous

    Well done from me too.

    We have done exactly that and as we have not got a mortgage to pay every month our savings obviously build up a lot faster. Well worth doing in my opinion. Go for it I say!

    Thanks edwink, appreciate the advice.
  • trailingspouse
    trailingspouse Posts: 4,042 Forumite
    Part of the Furniture 1,000 Posts
    Providing you have sufficient savings elsewhere to cope with an emergency, and provided you have no other debts at a higher interest rate (which should be paid off first), then absolutely, yes, go for it. And then plan what you're going to do with the money this frees up.
    No longer a spouse, or trailing, but MSE won't allow me to change my username...
  • tirosh
    tirosh Posts: 22 Forumite
    trailingspouse wrote: »
    Providing you have sufficient savings elsewhere to cope with an emergency, and provided you have no other debts at a higher interest rate (which should be paid off first), then absolutely, yes, go for it. And then plan what you're going to do with the money this frees up.

    Thanks trailingspous, I do have my emergency fund and fortunately no other debts.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture