Should i go mortgage free?

honestsammy

Hi,


I've always liked the idea of going mortgage free but wondered if it's actually a good idea in my position. Asking for opinions, understand there is no correct decision.


My position is:

- 80% of my mortgage is 0.38% + BOE, currently 1.13%
- 20% of my mortgage is 1.69% + BOE, currently 2.44%
This is for the life time of the mortgage - around 15 years of a 30 year term.


Now it's never really been worth remortgaging since i've had these terms, and I think it's worth clearing the 20% sooner rather than later. Should i clear the 80% quickly or keep it liquid to use as both an emergency fund and, whilst the interest rate is low, make some interest on the savings?


Note that I can't actually pay off my mortgage now, I mean pay more rather than save more.

Tropically

I think it would help if we knew the balance - how much do you owe?

I would certainly wipe out the 2.44% balance.

What is your risk tolerance? Paying down the 80% is a 1.13% guaranteed return. Would you rather a higher return on a riskier investment? You could get better than that with a regular saver and other savings accounts which would be a guaranteed return as well.