We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Redundancy / Mortgage Advice
Options
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...
0
Comments
-
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?).
1 -
Youre confirming my thoughts...Thanks1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards