Pay Lump Sum Off Mortgage?

IAMIAM

165k on house value of 250k

Two year fix in January rates will be more than doubling for me. Currently 1.44% vs 3.5% practically.

30k in Chase 1.5%. 

Worth paying off 30k to get it to 135k so payments remain low ish? Feel the 30k is sat doing nothing, if I need emergency capital in the future, just take out a further advance on mortgage or use 0% credit card/money transfer?

simon_or

What's the point of paying it off now given that it's sat in a 1.5% account and your mortgage is at 1.43%? Surely you could just wait till remortgage time in Jan to do that?

IAMIAM

simon_or said:

What's the point of paying it off now given that it's sat in a 1.5% account and your mortgage is at 1.43%? Surely you could just wait till remortgage time in Jan to do that?

Exactly.....worth doing it then?

simon_or

I guess it depends on your personal preferences.

I have better things to put excess cash in than paying off a 3.5% mortgage, but for you that may be the best use of the money.

Once rates get to 5-6%, at that point my preferences may change.

Bluebell1000

Personally I wouldn't feel comfortable with no savings, perhaps use half to pay off the mortgage in Jan? You could look at higher paying accounts e.g regular savers, or fixed rate accounts (if confident you won't need it) to try and get closer to the mortgage interest rate.

Alternatively how about an offset mortgage?