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Do I pay off my mortgage?
lisa7_96
Posts: 1 Newbie
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
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Comments
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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.Mortgage start date Nov 2014 - £90,545 over 25 years
Re-mortgage Oct 2017 - 78,295 over 23 years
Re-mortgage Jan 2020 - 55,000 over 26 years @ 1.94%
Current Mortgage Outstanding Middle December 2020 - £47893.35 - a reduction of £42,652 in just over 6 years!0 -
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.0
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