Pay it off in one go or stick to monthly?

Bm-Bloke

Hi
Looking for some advice.
I have a £114k mortgage and about to get some money which could mean I could clear this amount in one go.
I have a fixed rate at 2.59% for 10 years (7 left) so there is a penalty for paying off early but when compared with the savings on interest means it's still worth doing for a saving of approx. £1k.
The question is, should I find a good interest paying current account and put the money into this and still pay the mortgage as usual from that account and earn some interest or just pay it off in one go?
Thanks

kev2009

I would look at how much you could make compared to the additional £1k it would save you and as 1k isn't a huge sum of money, do you have perhaps other uses for the money, such as any decorating, new(er) car, holiday etc? If not, it might be better to have the money to hand should you need it due to any potential change in circumstances i.e jobloss etc.

I think i'd keep the money in savings account(s) and be secure in the knowledge that you have the money for the mortgage and potentially clear it in 7 years time when your fixed is up and you been able to save more money.

Kev

Bm-Bloke

thanks.
I want to be in a situation where I am not paying out of my wages each month as the payments are quite high, hence the question about paying it from a high (ish) interest accounts so for all intents the mortgage is paid off but payments are coming out of the saving account rather than my monthly wages account.