Offset Mortgage - Pay It Off or Continue Paying Monthly

Tom_Bradbury

I've got an offset mortgage which is completely 'offset' with savings so I'm paying zero interest.  I can't decide whether to just pay off the mortgage completely now, or just stick with making the monthly instalment which is going to reduce the capital amount as I'm not paying interest.  The remaining mortgage term is 5 years.  I can't see any risk of me needing my savings in the next 5 years, and I'd like to think my job is secure.  Given I'm not paying interest (and also not receiving any interest), is there any benefit in paying off now, or just continue to pay the monthly instalment? I'm trying to work out if simply by time factor of money, it's better to continue to pay by monthly instalment because the capital amount gets less and less due to inflation. I've also just been dragged into being a 40% tax payer so any interest I now earn on savings will be taxed at 40% after the first £500 so I'd need a good interest rate to make any savings worthwhile. I know they've recently gone up, but after tax, the return is still appalling.