Good time to clear mortgage with savings?

AnotherJoe

DiggerUK wrote: »

Debt is debt. A mortgage is debt. Clear the mortgage as your number one financial objective.
You’re so close to doing that, and would have all your income to yourselves. Then you can decide what’s next.
No need to worry about rainy day funds if mortgage has gone, at the moment loans are cheap as chips.

So if you lose your job, and since you dont have any emergency savings "since you dont have a mortgage", you advise people who are now unemployed getting a loan to pay for food, council tax, utilities etc?

DiggerUK wrote: »

I may sound old school regards debt, but it’s the best school I ever attended..._

You should have gone to a better one

jamei305

AnotherJoe wrote: »

Why would a market crash

What I said was the worse case would be a double whammy of market crash at the same time as interest rates rocketing. If you invest the cash you have to be prepared for it not to be available should you need to pay the mortgage down.

AnotherJoe

jamei305 wrote: »

What I said was the worse case would be a double whammy of market crash at the same time as interest rates rocketing. If you invest the cash you have to be prepared for it not to be available should you need to pay the mortgage down.

In my scenario the OP has a repayment mortage so it will get paid off gradually, I’m not advocating a pseudo endowment mortage where they accumulate funds to pay off an IO mortgage ona given date.

As they pay it off, each year the pound they owe becomes less, the final pounds they pay off are worth only about half the first ones. As contrasted with significant overpayment, where they pay off the pounds at close to full value (eg not diminished by inflation) and lose out on the opportunity for the overpayments to attract tax relief and growth bigger than inflation and interest,