Looking for opinions on my mortgage situation

Dannyboy13

Firstly, i understand this is maybe a nice problem to have for many so please bear with me. Some background, I have been a long term lurker on this forum inspired by the mortgage free wannabe diaries and worked hard to overpay my mortgage over the years sometimes upto 10% a year. I now find myself in the situation where the fixed mortgage deal ends in the Spring and I could pay the mortgage off if I wanted. The trouble is that despite that being my goal for sometime, now that I'm nearly there I'm questioning whether it is actually the right thing to do now i have relieved some of that pressure.

I am 35, live in the S.E, house value approx £400K and currently owe around £45k. 

I'm not sure whether to pay off, product transfer for a further 2 years (not a great deal being offered) or pay a big chunk off and just go onto variable rate for say another year just so there is a bigger rainy day fund. I am reluctant to start spending out big re-mortgage set up fees with another lender not saying i shouldn't consider. I keep saying if my mortgage deal had one more year i wouldn't hesitate paying off then but maybe i would still feel the same.

I guess being in this situation doesn't feel quite as good as i thought it would, can anyone else relate and what would you do?

I guess some other key info is I am married but already had house and mortgage just in my name, 2 kids and we both work.

powerspowers

I definitely wouldn’t pay any fees for a new product, they rarely work out worth it when it’s a lower amount owed.
 

Step back- what do you want to change when you are mortgage free? Reduce hours? Start a business? Go away more? Buy a Jag? Or just be financially comfortable? Think about the age of your children and likely costs on the horizon.  also consider whether you need to increase pension provision for you and your spouse.  

think about the big questions and that should steer your next actions, whether that’s no mortgage or small mortgage just ticking along in the background. And congratulations on getting down to the last 10%, that’s an achievement. 

silvercar

Keep a rainy day fund. There are some decent savings accounts available, so you would probably gain nearly as much in interest as you would be paying on your mortgage.