Redundancy / Mortgage Advice

all4one

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...

singhini

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?). 

all4one

Youre confirming my thoughts...Thanks