Almost mortgage fee

alancwearing

Hi
I am looking for some general advice on savings and mortgages.


I work for the NHS as a nursing assistant, I have a 15k mortgage, and £65000 savings and a £400/ month private pension
I am looking to retire when I am 60 in September 2018.(By then will have my mortgage down to £10k.)
My dilemma is do I pay off the mortgage or save. I receive my state pension when I am 66 so need cash to live off.
Thanks for any suggestions

Tropically

OMG if I had £15,000 in mortgage debt and £65,000 in savings I would pay it off regardless of any interest calculations or anything else. I would pay of my mortgage this second.

alancwearing

Hi Thanks for the reply. I have worked hard to get into this position paying £16000 off my mortgage in the last 2 years, while saving as well. While it may seem obvious to pay off the mortgage, I need cash for my retirement. Any other views on this please.

MM10

Hi,
It depends where this £65,000 is sitting. As in, what interest it is making?

Either way you need to pay off your mortgage at some point.

dark^knight

It's not a straight forward choice when you are so close to retirement.

Would it give you more peace of mind to just pay off the mortgage?

Scrimps

I would suggest posting this on the retirement board.
My query would be if you funneled that £65k through a sipp or something wouldn't you gain an extra 20% in a tax credit/refund...but then you would only be able to take 25% as a cash free lump sum.

beanielou

Why dont you pay off half & keep paying the mortgage on the half left which will of course continue to reduce. If you pay as a lump sum as a capital repayment it will reduce the interest that you pay.