Mortgage overpayments now match outstanding balance, what to do...

Jc_bromley

Hi, I've been overpaying my mortgage for a while now and the overpayments have matched the outstanding balance for a few years.
I can withdraw the overpayments and restart monthly payments if I wish but I don't see me ever needing to do that.
Apart from that option, I don't see any benefit in not finalising the deal and being mortgage free.
I'm 59 now and will be getting a decent pension & lump sum next year, so looking for some advice please....

dimbo61

Other than keeping the mortgage and having access to emergency funds if needed Now might be a good time to become mortgage free 😁

TrickyDicky101

I'm in a similar position to you OP - my mortgage has a large overpayment reserve and the actual monthly payment is a couple of pounds.  I have chosen not to completely settle the mortgage yet in part because it does represent a cheap source of funding should I require it but mainly because my mortgage is with Nationwide and they charge a £65 redemption fee to close the mortgage and remove the charge from the Land Registry.  However, if I settle the mortgage when there are 10 or fewer years remaining until the end of the mortgage term (currently there are about 16 years to go) then the £65 is NOT charged.  Hence, it makes sense for me to keep the deal open for another 6 years until I will finally close it.
Worth checking to see if anything similar is in place for you.

tigsly

How much interest will you pay over the next 6 years.. if it works out as over £65 you are not saving!