Do I pay off my mortgage? 19 January at 3:52PM in Mortgage-free wannabe 2 replies 182 views

lisa7_96

Hi all - my fixed rate of 1.99% ends the end of March.  I’ll have about just under £15k left on the mortgage.  I have just over that in savings.  Is it wise to pay off the mortgage?  Or any suggestions what kind of mortgage to consider?  Thanks all in advance 

Bargainhunter30

What rates are your current provider offering when your fixed rate finishes? Most lenders won't offer you a new mortgage for this little.

What's the interest rate on your savings? if this is higher than new mortgage rate consider leaving in savings, as this is a better return than the interest you'll pay.

 Do you have an emergency fund of 3-6 months? If not definitely consider leaving in savings to cover any unexpected expenses.

Ramouth

It depends if you need the money for anything else really.  You may struggle to get another deal unless you plan to pay it back very slowly - we found they were not interested in anything less than 2 years and that the fees to switch would have been greater than the savings over just paying the SVR.