Pay off mortgage or save

Nickyno

We have 2yrs 10mths left on our mortgage 8mths left paying £511.17/mth at 2.96% then will revert to SVR.  We have enough money to clear the outstanding amount on the mortgage (£17,000.00)
Should we pay the mortgage off now?
Continue to pay the monthly payments and put the money (£17,000.00) we have into a saving account?

Hoenir

By base rate do actually mean the SVR?  The time to settle the mortgage is when the fixed term has ended. Otherwise you'll incur early redemption penalties. 

Nickyno

Hoenir said:

By base rate do actually mean the SVR?  The time to settle the mortgage is when the fixed term has ended. Otherwise you'll incur early redemption penalties. 

Yes SVR.  edited original post

pramsay13

Here's what I would do. Stick the £17k in an easy access account earning 5%+. In the run-up to the end of the fixed rate I would look at rates available for the last couple of years. If mortgage rates are less than fixed term savings rates then I would fix for 2 years and put the savings into a 2 years fixed rate savings account, then pay off the mortgage at the end of that period.