Pay off Mortgage and have no savings?

a_choc_2_L8

HI,
I am facing redundancy and will get a payout if/when that happens. With the payout and savings I would have enough to pay off my mortgage just. Is it wise to do this and have no savings? 
TIA

Tropically

No, I would not say that's wise. If you end up needing money down the line, how will you get it? You will have to take on a new debt. Also with redundancy you don't know when you will get a new job. 

If you have your heart set on paying down your mortgage as much as possible, I would set aside one year's worth of a lean emergency fund and put in the rest. Calculate the minimum you need to live (mortgage, food, bills, but no entertainment and minimal fuel), not forgetting one-off payments like car insurance or home insurance. Be sure to keep that on hand, and then overpay the rest.

Every_penny

Sorry to hear you are facing redundancy @a_choc_2_L8 - tough times. I support @Tropically's comments. If it were me I would put the payout aside until you find a new job and once you are through the probationary period, then pay off as much as you can but leaving some savings for an Emergency fund. Even if you pay off mortgage, there are always ongoing outgoings - council tax, living costs etc that need covering. 

BTW I am assuming that you are solely relying on your own income - but perhaps you have a partner who can support you. Even so, no job is truly safe in this climate!

a_choc_2_L8

Thankyou all for your advice. Its very helpful. Yes I am on my own so really thinking it is the relief of owning my home outright as I have no other support and only my income to support me. It would definitly feel good!. My mortgage is not out of its fixed rate deal yet so i would incur a charge at the moment so have some time to think about it and yes hopefully secure employment first. Many Thanks again