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Early Settlement vs Investment
Zomoniac
Posts: 11 Forumite
Hi all,
Our mortgage has £154k and 21 years outstanding and will reach the end of the fixed term in November (£5k penalty if settle before). We've recently come into a position that would allow us to pay it off in full when that term ends.
Our current rate is 1.88%, and I'm sure we could get something even lower if we remortgaged it at the end of the fixed term, especially if we used some cash to get the LTV down to 60%.
I know that logically it would make more sense to do this, take another mortgage at a low rate whilst it's still possible and invest the rest of the money in a fund that would return more, but there's something greatly appealing about just paying it off and being completely debt free.
What would you do in this position? Play the long game and invest the mortgage money, or succumb to the allure of complete financial freedom?
Our mortgage has £154k and 21 years outstanding and will reach the end of the fixed term in November (£5k penalty if settle before). We've recently come into a position that would allow us to pay it off in full when that term ends.
Our current rate is 1.88%, and I'm sure we could get something even lower if we remortgaged it at the end of the fixed term, especially if we used some cash to get the LTV down to 60%.
I know that logically it would make more sense to do this, take another mortgage at a low rate whilst it's still possible and invest the rest of the money in a fund that would return more, but there's something greatly appealing about just paying it off and being completely debt free.
What would you do in this position? Play the long game and invest the mortgage money, or succumb to the allure of complete financial freedom?
0
Comments
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When I came into a lump sum I paid off my admittedly very small mortgage and have never regretted it. Owning the roof over your head is immeasurably fabulous.All that clutter used to be money0
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