IS IT WORTH IT PAYING OFF MORTGAGE?

[Deleted User]

Bobby4puddings said: the 

Hi, I now have the opportunity of paying my mortgage off in full but cant work out if its worth it.
My mortgage redemption figure is £64000 which includes a £1246 early repayment fee.
It has a fixed 2.53% fixed interest rate which ends 30/9/2021 and I pay £408 per month with 15yrs 5mths left on the mortgage.
Do you think its worth paying the mortgage off in full early, or wait til 30/9/2021 when this fixed rate ends therefore saving me the £1246 early repayment fee?
(I already pay the max lump sum amount each year off it)
Thanks! 

Looks like the ERC is 2% of the balance right now 
That will likely go down to 1% in the last year ( 1st Oct onwards) 
interest looks like its around £134 a month and obviously slightly reducing each month. So until the final year starts this year you will make 4 more payments so around £536 or £ 670 if 5 months payments needed plus if you then paid it off £680 ERC ( IF it goes to 1% from 1st Oct ) 
so similar amounts ! Personally Id just pay the thing off and have that lovely “mortgage free” feeling rather than worry over a few pounds. 

You’ll pay around £2,300 to £2,400 in interest if you wait until ERC ends - so better to pay off, unless you have a good savings rate ! 

Bobby4puddings

Thanks for everyone's comments so far
I've been in touch with Nat west and I can pay 10% off the £62500 mortgage on 1st October and from that date the early repayment charge will drop from 2% as it is now to 1%.
I could keep my £62500 in my massive 1.2% interest account for the 4 months
But I reckon with my poor maths this would only save me around £100 If i did it this way.

superbirdfrosty

I need some advice please.
My mortgage endowment ends this December 2020.
It is on target to pay out what it was taken out to cover....£50.000 
It has also had in recent years a guarantee placed on file to pay out the above amount..
My yearly annual statement last year showed that the policy was worth £59,000 this included final bonus of £17,000 although the final bonus figure could not be guaranteed.
Surrender value at this time was £54,000
I wondering if I should cash it in now and take the surrender value or let it run until December and hope that the financial markets pick up given the current situation with the pandemic and potential uk recession.

daivid

Are you guarenteed £50k? You say you are but then say the bonus isn't guarenteed, does this mean if the bonus fails to materialise any shortfall to £50k is covered? Is the surrender value still the same? If so you seem to have a choice between pocketing £4k now or holding tight in the hope of £9k, how lucky do you feel? How much does £4k mean to you?