Paying off mortgage in full or keeping it going

Newbie_John

Well if you fix your mortgage at 5% your net cost will be £1000 (4% premium bonds, 4% net interest after tax - so average 4% return). 1% of £100k. If you move to 8% SVR than it's £4000 cost - so definitely avoid that.

Now, you're paying £1000 for easy access money as well as chances of winning million in premium bonds.
That's £3 a day - if you can rebuild your savings quickly and not needing these savings - then you may as well pay off your mortgage and play lottery daily 

MFWannabe

Gam2015 said:

I am currently on a 1.83% mortgage that expires on the 2nd of January. I have sufficient funds to pay it off in full but i would like to keep my premium bonds running on the off chance i might win a million lol! Only thing is my follow on rate is 8.5%. My current mortgage is £102500 i have 50k+ in an easy access savings at 5% and 50k in premium bonds was thinking to pay a lump sum with all the easy access savings money and keep my premium bonds. What are peoples thoughts on this 🤔

What are the rates from your lender for new fixed rate deals/ tracker etc 
You definitely want to avoid going in to SVR 

Gam2015

MFWannabe said:

Gam2015 said:

I am currently on a 1.83% mortgage that expires on the 2nd of January. I have sufficient funds to pay it off in full but i would like to keep my premium bonds running on the off chance i might win a million lol! Only thing is my follow on rate is 8.5%. My current mortgage is £102500 i have 50k+ in an easy access savings at 5% and 50k in premium bonds was thinking to pay a lump sum with all the easy access savings money and keep my premium bonds. What are peoples thoughts on this 🤔

What are the rates from your lender for new fixed rate deals/ tracker etc 
You definitely want to avoid going in to SVR 

Hi i can get a 2 year fix with no fees at 5.43% with current lender. 

Archerychick

At 8.5% you won’t earn that savings so purely from this angle it would be better to find a better deal so you’re close to be even (if you want to keep money in savings rather than pay it off).

Premium bonds I think works out to be 3.something% on average luck so that be 8.5% isn’t a great deal, but that vs 4% perhaps that doesn’t look too bad. 

I tend to look at these things purely on what gets me more money. 

Gam2015

Archerychick said:

At 8.5% you won’t earn that savings so purely from this angle it would be better to find a better deal so you’re close to be even (if you want to keep money in savings rather than pay it off).

Premium bonds I think works out to be 3.something% on average luck so that be 8.5% isn’t a great deal, but that vs 4% perhaps that doesn’t look too bad. 

I tend to look at these things purely on what gets me more money. 

Tbf i have done really well this year on premium bonds and got 5.7% on 50k holding tax free. 

Archerychick

Gam2015 said:

Archerychick said:

At 8.5% you won’t earn that savings so purely from this angle it would be better to find a better deal so you’re close to be even (if you want to keep money in savings rather than pay it off).

Premium bonds I think works out to be 3.something% on average luck so that be 8.5% isn’t a great deal, but that vs 4% perhaps that doesn’t look too bad. 

I tend to look at these things purely on what gets me more money. 

Tbf i have done really well this year on premium bonds and got 5.7% on 50k holding tax free. 

Very nice! Hope you get a big win