Should I pay off my mortgage

anonymous2_0

Hi all, 

My current fixed rate comes to an end this month. I have already sourced a new 2 year deal at 4.54%. Circa £50k left on mortgage with 6 years to go. 

Recently came into some money, so could pay off the mortgage and still have some leftover. I could pay it off before the new deal kicks in and therefore no early repayment charges. So question is should I pay off mortgage, or move onto the next 2 year deal and put money in savings instead? 

Brie

There's not a lot of savings accounts that are going to be paying you too much above 4.54% and rates seem to be coming down so I'm not sure there's much to gain that way.  And I've got to say not having a mortgage is a great relief as you can know that all the income is yours and not have a huge chunk monthly going to a bank.  

So think about it differently perhaps.  First pay off the mortgage at the point there's no charges.  Then go find the best savings account you can and pop the rest of your windfall into that.  Take a fair portion of what you might normally be paying to the mortgage into the savings account each month - set up a standing order so you know it's happening and is a regular thing.  That way you have the relief of no mortgage and added bonus of regaining all that money in a nice safe place waiting for you to spend on something nice.  

Veteransaver

For such a relatively small mortgage I'd just clear it off. There's a cost to having a mortgage. Eg product fees each time you move it / fix it etc.
You'd be unlikely to beat the return by putting 50k elsewhere. 

anonymous2_0

Thanks both. Looks like I’m going to be mortgage-free come 1st May. 

penners324

Post mortgage I'd put those payments into your pension not savings