Still a good time to pay mortgage balance off?

Clarabell1985

So 1 June 2020 has been a red letter day for me for the past 9 years. Why because it is the day I make my last mortgage payment and pay the balance off with savings. I just wanted a view on whether it’s still a good time to pay your mortgage off? Rule of thumb I always go by is that if your mortgage rate is higher than your savings rate it’s better to pay down / off your mortgage. I’ll still have about 20k in savings even when I have paid mortgage off but just wanted some confirmation that to pay my mortgage off is still a good decision I’m the current economic climate. 

Pugblue

I would suggest it still makes sense, especially if you have savings to fall back on! However if you want to feel a little more assured I would work out how long 20k would cover your living costs (minus the mortgage payments now ) so you know in the worst case where you would stand! I think I read that the average recession last somewhere between 11 to 18 months? If you can use the 20k to cover this I am sure you would be fine.

PS well done to get to this point! My red letter day is currently 2037 march 16th! 

Clarabell1985

Pugblue said:

I would suggest it still makes sense, especially if you have savings to fall back on! However if you want to feel a little more assured I would work out how long 20k would cover your living costs (minus the mortgage payments now ) so you know in the worst case where you would stand! I think I read that the average recession last somewhere between 11 to 18 months? If you can use the 20k to cover this I am sure you would be fine.

PS well done to get to this point! My red letter day is currently 2037 march 16th! 

Thanks so much for your response! I work for the NHS so although it’s hard at the moment work wise  the one good thing is that my job is pretty safe and I have a regular income so hopefully won’t have to dip into my savings too much! 

It will fly around, I’ve been waiting for this day for 9 years! Good luck! 

mumf

Its always a good time to pay off your mortgage.When we did it,3 months later I was made redundant.Ain't no feeling better than knowing that your house and land belongs to you,lock,stock and barrel.Well done!

Clarabell1985

mumf said:

Its always a good time to pay off your mortgage.When we did it,3 months later I was made redundant.Ain't no feeling better than knowing that your house and land belongs to you,lock,stock and barrel.Well done!

Thank you so much! 

I only have a 2 bed terraced house so not a mansion by any means, but nonetheless I’m happy that I will be mortgage free from June 😊