Should I pay off mortgage

smorg1966

I am in the current position that I can now pay off my mortgage should i wish. However, I am looking at moving house next year and so would I be better to keep my mortgage, port it over to the new property and use my savings on the new house. Or should I pay of the mortgage in Jan (when my ERC's go down) and look at getting a new mortgage should I require it when i move. At the moment no new has has been looked at , so the move may not be until Aug time?
Thanks for any thoughts

getmore4less

Thanks for any thoughts

some numbers would be nice to have any clue about what might be worth doing.

smorg1966

Approx 50K left on mortgage, with an ERC of 1 percent of outstanding balance from Jan. New house may be up to 50k on top of current value of house.

dimbo61

What is the interest rate you are paying on your mortgage ?
What interest rate are you getting on your savings ?

smorg1966

Mortgage rate is 2.89, but this will go to the SVR Mar 19. Whereas the interest rate is only 0.75 on the savings, but as i may need quick access I am loathed to tie it up to a better rate on a long deal

Sarastro

I'd pay off the mortgage as you will definitely save on interest you would otherwise pay and this is more than the interest they are earning as savings. The new house bit is a red herring as you don't know how much it will be or when.