should we pay off our mortgage?

We currently have the funds to pay off our mortgage. We plan however to move in 18 months time.

Our current rate is 1.25% variable we owe approx £58,000
We will need a new mortgage when we move as we are upsizing

Apart from the obvious with regards to savings and interests rates I just wanted to know if it will be harder to get a mortgage if we don't have one at the time of applying. We are both 49yrs old married no debt. Will we have access to better rates as we won't be remortgaging or does that not make a difference.

Many thanks in advance


  • Sounds like you're in a very similar situation to me - I'm planning on paying off a lump sum on my mortgage and moving house in the very near future. Personally, I'd pay it off in full and divert what were your monthly mortgage payments into a regular savings account so you'll have a bit more to add to your deposit in 18 months time.
    But I'd wait to see what others more knowledgeable than myself have to say first!
  • edinburgher
    edinburgher Posts: 13,422
    Name Dropper First Anniversary First Post
    If you can beat 1.25% (after tax) in savings (or if it's a close run thing), I'd probably just hang on to the cash.

    I don't think the fact that you're moving house as opposed to remortgaging will get you significantly better deals, although providers might offer you promotional rates if you're a new customer.

    I don't think your age will come into it much (all the new tests will be around affordability), although it might restrict the length of mortgage that you're able to apply for (or you may be able to take a mortgage into retirement, but they'll expect to see proof of future income etc. etc.)

    In any case, it sounds like you're in a good place to be.
  • Retter
    Retter Posts: 22
    First Anniversary First Post
    In my last house I had about 70% of the outstanding mortgage in cash and chose not to pay it down. Like you I intended to move. When the time came my house sale fell through twice which was mayhem. Only for the fact that I had the cash pot I was able to progress my new house purchase and then pay down the mortgage when my house sale finally went through. Just something to consider.
  • I have a buy-to-let mortgage, and I'm wondering whether to pay it off? On my tax return I receive 25% back on the interest payments. I'm trying to get my head around whether it would be more beneficial to pay it all off, or continue to make payments?
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