Should I Pay My Mortgage Off?

JamesCoster

I have an offset mortgage, with c.£63k left to pay over the next seven years at 2.35%. I have £63k in the linked `savings' account, plus other savings. I'm still working and am ok with my monthly payment of c.£850, which I remove from the `savings' account each month to reduce it in line with my mortgage.
My question is should I pay off my mortgage now? I like the comfort of having the £63k to fall back on should I need to, but is there any financial benefit in me paying it off early?
As far as I can see, there's no difference is there, or am I missing something?

dimbo61

Only if you need to claim benefits ?
Having over £16,000 in savings means you can qualify.
So if you want to pay off a lump sum but still keep a reasonable offset balance of say £16,000 with £16,000 outstanding on the mortgage balance your monthly payment should drop big style 

MWT

I was in that position as well a few years ago, and with the excruciatingly low interest rates available on cash deposits at the moment, together with the general uncertainty around business recovery and the economy, I'd do now the same as I did then which is to just keep the cash there as an 'emergency fund'.

JamesCoster

dimbo61 said:

Only if you need to claim benefits ?
Having over £16,000 in savings means you can qualify.
So if you want to pay off a lump sum but still keep a reasonable offset balance of say £16,000 with £16,000 outstanding on the mortgage balance your monthly payment should drop big style 

No benefit claims, just like the comfort of an emergency fund, which in all honesty I probably don't need. The £850 is skimmed off every month into an instant access account paying 0.55%, so I don't see any difference in doing that, or paying it all off and paying the £850 straight into the instant access account??

MovingForwards

Pay it off, be mortgage free and open up an account which pays better interest (see the savings board for ideas) or top up your pension with the now spare money.

MFWannabe

You say you have other savings so as long as you do have some for emergencies I would pay off the mortgage; I love the idea of being mortgage free 😁