Should I pay off my mortgage?

novaldex

Hello all, sorry for asking what might seem such a silly question, but with all the rate rises I find myself with options.

Firstly, i've had my mortgage since Feb 2008. Circa £120k, fixed rate for 3/4 years at about 4.5%, then it dropped to a variable rate. It was meant to be something like 2.65% above the base rate, but my lender didn't really notice that and I was paying less than 2% at first, with hardly any rises until the past year or so. Exploiting this flaw in their calculations also made me decide against remortgaging, as there really was no way I could get anything better, plus it would cost me to do so.

Added to that I was fortunate enough to seriously overpay, without penalty, so I described it to myself as being a responsible borrower by trying to reduce what remained as quickly as possible.

Then the pandemic hit. I wasn't sure what might happen during this time, but as i'd seriously made a dent in the outstanding balance, I felt it was safe for me to discontinue the overpayments until I knew better what was happening.

I'm now at the point where I have less than £5k over the 6 years remaining, and my monthly amount is now in the region of £60. Last interest rate rise for me took it to 3.25%, although the recent .5% increase hasn't hit yet. I can find that total amount from savings, it may be a slight hit for a couple of months, but nothing impossible.

I'd like to know what the community thinks, the pros/cons of both sides, plus what else will I need to do & take care of being mortgage free? There must be something i'm missing but I can't see it

Thanks in advance!

TheMilkmansDad

personally - I'd overpay the mortgage if your allowed. If the balance is zero before your term ends then no penalties will apply and you'll have piece of mind of not having a mortgage.

novaldex

Think my concerns relate to what other impact it would have. What to do with deeds, credit rating, etc. I'm just one who likes to know as many facts about it as possible before I jump in. Actually paying it off (strangely) may be the easiest bit