Should I pay it off?

langford1969

My offset is has a rate of 2.13%
I have 150,000 left to pay
I have over 240 000 in the offset account
I can pay it off with no penalty I believe.
My monthly payments are about 900
What would you do?
TIA

Debtslayer

How many months are remaining?
Personally I'd pay it off as I'd like the feeling of being mortgage free

clairebeth

Personally, I would, but I'm not you of course. Pay it off, put some of the rest aside in the best interest account you can find as an emergency fund. Put the rest in pension/investment and take it from there? But that's just what I would do, not necessarily what you SHOULD do!

Peelerfart

Yup, agree with above, based on the info provided pay it off. Though there may be things that could skew that. Credit card debt for example

YHM

Who is your offset with? Some lenders will allow you to pay down to £1 and then keep the facility open if you ever need it.

TrickyDicky101

Why would you bother paying off? Just keep at least £150k in the offset and then do what you want with the remainder. That way you retain maximum flexibility whilst minimising interest paid.

getmore4less

langford1969 wrote: »

My offset is has a rate of 2.13%
I have 150,000 left to pay
I have over 240 000 in the offset account
I can pay it off with no penalty I believe.
My monthly payments are about 900
What would you do?
TIA

what rate are you getting on that other £90k?
(most offsets it will be 0%)

Might want to look at investing elsewhere

change to 100% offset and have the payment come out of an offset account and forget it, easy access to money should you need it.


If you plan to move and can port you currently have a total pot of £390k + equity to buy somewhere new

langford1969

I have over ten years to pay it off...currently i am saving about 300 a month from the interest which is cool....i have saved over 20k off the final amount as well

langford1969

I understand your thought process...the thing is there is very little out there as far as investments go.... i have teachers pension frozen and a local authority one i am paying into now.
If i paid it off i would have about 100k in cash......could do something i suppose but I don't really want to lock it up

langford1969

I am with woolwitch for mortgage and Barclays for account

I wonder if doing what you say will then allow me to still borrow if i need it...good idea.

getmore4less

With your Barclays offset there is a reserve account but they are trying to restrict them so best avoided these days.

Stay offset if you may ever want access to the money(costs nothing)

You excess funds get no interest move them to another account.

if not sure where to put and for how long and want near instant access what about premium bonds?