Is it this simple?

OldPedaller
Forumite Posts: 2
Newbie

Just want to be sure I'm not overthinking this. Like most of us, I always wanted to pay off the mortgage as soon as I could.
I have inherited enough to pay off my mortgage, currently £86K on a fixed term deal that ends 2026. The mortgage itself has about 10 years to run.
The Fixed Term Mortgage interest rate is 1.5%
There are plenty of one year fixed savings of around 5% now available.
So I think if I keep paying the 1.5% until 2026 and get 5% on the £80K, I'm going to be around £3000 a year better off (3.5% of 86K)?
Plus maybe a slightly smaller early redemption fee because the amount owed by 2026 is a bit less?
Have I got this right?
I have inherited enough to pay off my mortgage, currently £86K on a fixed term deal that ends 2026. The mortgage itself has about 10 years to run.
The Fixed Term Mortgage interest rate is 1.5%
There are plenty of one year fixed savings of around 5% now available.
So I think if I keep paying the 1.5% until 2026 and get 5% on the £80K, I'm going to be around £3000 a year better off (3.5% of 86K)?
Plus maybe a slightly smaller early redemption fee because the amount owed by 2026 is a bit less?
Have I got this right?
0
Comments
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just remember the tax on the savings - but even with that it looks like you will be better off saving and then paying when the fixed rate ends1
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And by waiting you also avoid any early repayment charges.0
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Emmia said:And by waiting you also avoid any early repayment charges.0
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OldPedaller said:Emmia said:And by waiting you also avoid any early repayment charges.
You're currently mortgage neutral, as you have enough to pay it off.
1
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