Do I pay off my top ups

28crewchief

My Wife & I, are considering paying off 2 small top up mortgages that we have to our main mortgage. 2 years ago my wife was ill, we were fortunate to have a good Mortgage life policy. This subsequently paid off our main mortgage to the tune of about £100k. We are now left with two smaller mortgages that were linked as additional borrowing to the main mortgage. We owe just over £13000 in total on the two, with approx. 7 years left to run. If we pay these off in full which we are in a position to do we would be £250 per month better off. Should we do this? We have no other outstanding debts or loans. Your help would be much appreciated.
Thanks
Craig

MFWannabe

I doubt people will be able to answer you given the limited details 
1) What’s the interest rate? 

2) Any early repayment charges? 

3) Would you still have any savings left? 

getmore4less

^^^^^^^^^^^^^^^^
questions need answering.

Also your £13k over 7years does not add up for a £250pm payment
£13k over 7 years £250pm that's a very high rate  ~ 15%   6 years would be  11.5%


You are not really £250pm better off.
If you have £13k cash and £13k debt over 7 years at a sensible rate of say 2% £166pm
Paying off the debt saves  £942 in interest over 7 years  about ~£11pm on average.
eg. if you draw down on the £13k(/(7*12)) £155pm to pay the mortgage you need to top that up by £11

dimbo61

This depends on lots of factors.
Savings, Income, debts other than the mortgage ? Interest rate and savings rates and don't forget benefits.
If you have more than £16,000 in savings your not entitled to certain benefits.
So if you have a good savings pot earning a really poor rate of interest and can clear the mortgage debt without paying ERC, s why not clear your debts and become mortgage Free.
In the current Covid19 climate maybe keeping a good savings pot is a good idea.
We are working at becoming MF ASAP