Pay off mortgage or invest dilema

paulstevo

Hi all after some advice regarding paying off my mortgage or not.
I have 22k left to pay on what is now a Barclays base rate mortgage running at 0.94%.
I have Santander 123 select account with 38k in it as it stands today.
After reading about Santander 123 rate coming down to 1% I need to spring clean my finances .
Im also due to retire in 3 years and have a healthy pension which is available upon my 55th birthday 
Trying to set myself up for this date and need to have finances nice and secure to enjoy retirement with family . 

Advice on this and any other things financially would be much appreciated .

kuratowski

How long is left on your mortgage term: if you keep on paying your normal mortgage payments, will it be completely gone by the time you retire at 55?  If not, would your pension be sufficient to continue to pay the mortgage until it is redeemed?

You could look at Marcus for the 38k.  Unless you have a long term goal for it (and won't need to access it for 10 years+) it's probably best to save it rather than invest it.

paulstevo

12 years left on mortgage 
I currently well overpay at rate of £800 per month. Just thinking at current rate and with me having some spare cash is it wise to pay of or invest spare cash .?

kuratowski

Mortgage rate is 0.94% and you can definitely get a higher savings rate, so it doesn't make sense to pay off right now, I would say.  When you do come to retire it might look different if the mortgage payments aren't comfortable from your pension income.

With sufficient pension, and already mortgage neutral, but fairly modest amount of cash - I would suggest to save spare cash but not invest it.  Although this is based on what you've posted here without knowing your full circumstances.