Should I pay off my mortgage?

HelmGuy

Hi, I need a little advice.

I'm in the lucky situation where I'm about to sell a business and that would leave me with enough cash to completely pay of my mortgage in full.

However, I'd like access to the cash to start a new business when I'm ready so I don't want to tie it up completedly. However in the meantime I'd obviously like to save on the interest I pay each month on my mortage (about 1k a month).

So I'm wondering whether I should look at an offset morgage or something like a 'one account'. If I had enough cash in an account would that mean I'd pay NO interest on the mortgage at all? Or is it not that simple?

Thanks in advance.

Mark

vansboy

You might be best NOT going for the Offset scheme, IF the lender is going to charge a hefty transfer/set up fee. Certainly not if you intend to draw down the funds again, soon.

You'll possibly find the costs involved, together with a higher interest level, compared to any standard/fixed discount deals, would make savings, not as much as you might think.

You'd be better, short term, just geting the £$£$ into highest interest paying savings you can find.

VB

HelmGuy

My current mortgage is with Intelligent Finance and I see they do offset mortgages. Using their onlin calendar is seems that if I have enough cash in savings to coerver the total amount of the mortgage then I'd effectively pay no interest each month.

If I'm not wrong wouldn't the interest I'm saving be higher than any interest I'd earn after tax on any saving's account?