Paying off the mortgage on not

mcrterry

I hope this is on the correct forum and please direct me if its not.
We are lucky enough to have a mortgage of less than 5k, probably 4500 its a Virgin One account.
Our daughter is a first year 6th form student and we have roughly 21,000 in her education account.
We also have an interest free loan credit card on the go that in March 18 we will need 4000 to pay from the V one account.
My thoughts are top pay the balance off our mortgage now or in March and be mortgage free again and this should give us 18 months to rebuild the education account.
Mrs Mcrterry doesn't think this is a good idea and we should just carry on with the tiny mortgage.
I just hate having a mortgage.
Any thoughts on what we should do?

StopIt

How much interest would you save by doing this?


What interest rate is in the savings account?


If it's a few quid either way, it's not worth the argument, thus listen to the boss!

lika_86

What's the education account for? University?

mcrterry

The education fund is for Uni and the money is in an ISA earning 1% if that. Think our variable mortgage is 3-4% maybe more come lunchtime!!
Thanks for your help

StopIt

Based on an APR of 3.5%, and a repayment length remaining of 2 years, you're due to pay approx. £165 in interest.


The interest on £4500 of your savings will accrue approx. £90 in this time.


Again, are you willing to get into an argument over £75?

mcrterry

Yeah I know and take your point. I looked at worse case of £8000 and 5% over 2 years and its still only 250 quid.
It was more about the effects of robbing 5-8 grand from the Uni pot.
Its more about my flipping ego and not having a mortgage again:rotfl:
Many thanks for your comments much appreciated

StopIt

mcrterry wrote: »

Yeah I know and take your point. I looked at worse case of £8000 and 5% over 2 years and its still only 250 quid.
It was more about the effects of robbing 5-8 grand from the Uni pot.
Its more about my flipping ego and not having a mortgage again:rotfl:
Many thanks for your comments much appreciated

Haha, don't worry, this is MSE and the MSE way would be to say "Yes of course it's worth £75, that's still £75 in your skyrocket".


However, if doing so will downgrade your short term future dinners to whatever the dog is having, that may also have a bigger impact than a few extra £££