To pay or not to pay.

theshed

Our fixed rate ends in January and will leave us with around £30,000 left to pay. We have just over £30,000 in savings.
So should we pay it off or remortgage ? In addition to the repayments we overpay so in theory we will have an extra £700 to save.
However our single daughter is on a fixed rate mortgage which is due to end in 18 months. She earns a decent wage but is reliant on contracts so not a regular income.
Should we remortgage and keep savings to help her when the time comes ?

MWT

theshed said:

However our single daughter is on a fixed rate mortgage which is due to end in 18 months. She earns a decent wage but is reliant on contracts so not a regular income.

Should we remortgage and keep savings to help her when the time comes ?

If you can save £700 a month, you will have rebuilt your savings by more than £12,000 by the time her mortgage fix ends, and you'll still have that £700 each month to help out...

Have a look at the rates you can get for your renewal and compare to your savings rates, but personally with interest rates only heading in one direction right now I know which way I'd be leaning...

theshed

I did think that saving that £700 would add up but never realised how much it would accumulate in a relative short time.
I will see what available, but yes, cannot see and decent mortgages coming to market anytime soon.

tdawber

personally i would pay the mortgage off, definitely would if the rates go to 6%