We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
to pay off or save...
samuela66
Posts: 1,203
Forumite
Afternoon
I am just about to receive the money from my fathers estate, we only owe 50k on our mortgage, I was going to pay it off, but I think with interest rates being so attractive I should put it in a high interest account and just pay the monthly mortgage payments, we are on a great fixed rate for quite some time..... whats your opinions please, thanks
I am just about to receive the money from my fathers estate, we only owe 50k on our mortgage, I was going to pay it off, but I think with interest rates being so attractive I should put it in a high interest account and just pay the monthly mortgage payments, we are on a great fixed rate for quite some time..... whats your opinions please, thanks
Sam B
0
Comments
-
If the interest rate you can get on savings (after any tax that may be due) is higher than the interest rate you are paying on the mortgage, it makes no sense to pay off the mortgage.
Make £2026 in 2026
Prolific £231.51, Octopoints £4.60, Tesco Clubcard challenges £38.80, Airtime £10 TCB £225.19, Everup £77.04, Roadkill £1.77, Zopa CB £30, Misc £10.11,
Total £629.02 31%Make £2025 in 2025 Total £2241.23/£2025 110.7%
Prolific £1062.50, Octopoints £6.64, TCB £492.05, Tesco Clubcard challenges £89.90, Misc Sales £321, Airtime £70, Shopmium £53.06, Everup £106.08, Zopa CB £30, Misc survey £10
Make £2024 in 2024 Total £1410 70%Make £2023 in 2023 Total: £2606.33 128.8%3 -
Agree that is the logical answer and approach but sometimes with debt of any type the psychological reward of paying it off in full far outweighs the benefits of any interest foregone by doing so - especially if there is a risk of the lump sum being frittered away in dribs and drabs and one day a realisation that there's no savings left and payments still having to be made to that mortgage/loan.Slinky said:If the interest rate you can get on savings (after any tax that may be due) is higher than the interest rate you are paying on the mortgage, it makes no sense to pay off the mortgage.
3 -
Luckily best saving rates come with fixed savings accounts. Question is what's your mortgage interest rate and the remaining term?
But most likely save.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.8K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.2K Spending & Discounts
- 248.3K Work, Benefits & Business
- 606K Mortgages, Homes & Bills
- 179K Life & Family
- 263.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards