Thinking of being Mortgage free end of year.

My current Mortgage Deal is coming to an end of the Year, I owe about 48k , Current Interest  rate is 2.25% and LTV showing 13% , Thinking of Just paying that amount off , I don’t really have any other Debts I need to pay off etc So would it be a good idea to pay this amount off or stay with mortgage and get a new rate which will most likely be lower if I stay with them come end of current deal?

Comments

  • FtbDreaming
    FtbDreaming Posts: 1,121 Forumite
    First Anniversary First Post Name Dropper
    I’d pay it off if you have the cash. Then rebuild your savings with what would have been your mortgage payments. 
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 
    Current Balance: £60,200 (59.9% LTV)
    MFW2020 #156 £723.13
    MFW2021 #26 £1184.71
    MFW2022 #11 £197.87
    MFW2023 £785
    MFW 2024 £528.15

    Determined to make it! 
  • Nowherefast
    Nowherefast Posts: 40 Forumite
    First Anniversary First Post
    I’d pay it off if you have the cash. Then rebuild your savings with what would have been your mortgage payments. 
    Yeah thats what I'm thinking,  I have not worked out how much Interest the banks are earning if I stay with them , I understand that 48k is still good to keep as accessible money , But also think it might be an amount I can afford. 
  • FtbDreaming
    FtbDreaming Posts: 1,121 Forumite
    First Anniversary First Post Name Dropper
    Yeah I suppose it’s relative to what you earn/ lifestyle is. To me £48k is 2 years salary and there’s nothing I could think of ever popping up that I would need that sort of cash. Obviously don’t leave yourself skint but minimising outgoings is my ultimate goal so I’d deffo be going for the mortgage freedom! 
    Mortgage started August 2020 £69,700
    Mortgage ends Aug 2050 MFW: Aug 2027 
    Current Balance: £60,200 (59.9% LTV)
    MFW2020 #156 £723.13
    MFW2021 #26 £1184.71
    MFW2022 #11 £197.87
    MFW2023 £785
    MFW 2024 £528.15

    Determined to make it! 
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards