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Redundancy / Mortgage Advice
all4one
Posts: 40 Forumite
I'm being made redundant I will have enough to pay off my mortgage - is there any reasons why I shouldn't ? Mortgage contract ends in September so there will be no fines as I understand...
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Comments
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In simple terms if you can get the redundancy money earning higher interest than your mortgage interest then its perhaps better to do that. Personally i would pay the mortgage off.
My sister was in the same position as you and she didn't pay off the mortgage; her argument was that you tie up capital in an illiquid asset i.e. it can take months to sell a house and so the money is tied up. Also mortgage borrowing is usually at a low rate compared to other forms of borrowing so pay car loans and credit card bills off first (if you have them obviously).
She also felt that having a mortgage would make it easier for her to sell and move if she wanted to (not sure how that works?).
I have a tendency to mute most posts so if your expecting me to respond you might be waiting along time!1 -
Youre confirming my thoughts...Thanks1
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