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Should I go mortgage free?

stagley1
Posts: 1 Newbie
Can't make up my mind so thought I'd ask others opinions.
Redemption figure is £6200 with interest at 2.29%. If i carry on paying normal payments (inc overpaying) I'll be free of mortgage anyway in approx 22 months, without overpayments it'll be about 3 years.
I have £7000 in savings currently earning 1.2%.
So if i pay it off I'll be down to £800 in savings. I am furloughed at the moment but am able to carry on paying at my basic rate without overpayments, however
i'm worried that the place i work won't survive this downturn, it wasn't in the best of health as a company anyway. There's the worry, I could end up unemployed with very little savings but no mortgage. The financial difference (interest on mortgage compared to gaining on savings) between carrying on paying and paying it off is only about £120 as far as i can work out.
I know in these times my little problem is tiny compared to many who are facing financial ruin around the country but just thought I would chuck it out there.
Thanks in advance.
Redemption figure is £6200 with interest at 2.29%. If i carry on paying normal payments (inc overpaying) I'll be free of mortgage anyway in approx 22 months, without overpayments it'll be about 3 years.
I have £7000 in savings currently earning 1.2%.
So if i pay it off I'll be down to £800 in savings. I am furloughed at the moment but am able to carry on paying at my basic rate without overpayments, however
i'm worried that the place i work won't survive this downturn, it wasn't in the best of health as a company anyway. There's the worry, I could end up unemployed with very little savings but no mortgage. The financial difference (interest on mortgage compared to gaining on savings) between carrying on paying and paying it off is only about £120 as far as i can work out.
I know in these times my little problem is tiny compared to many who are facing financial ruin around the country but just thought I would chuck it out there.
Thanks in advance.
0
Comments
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Personally, i'd make sure I had plenty of available cash right now, especially if I had any concerns about the viability of my employer. So my suggestion would be to hang on to the savings, if everything turns out ok then pay off the mortgage once things go back to normal. Being mortgage-free is a great goal, but there's no sense in being asset-rich but cash-poor.1
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