Offset Mortgage

Upwind

I currently have an offset mortgage with Scottish Widows amounting to £60,000. However, I am in the fortunate position of having been able to offset this completely - I therefore pay very little interest on my mortgage. Each month, my mortgage is taken from my bank account on the 1st and is returned on the 4th.

I did this initially as I was unemployed for a short time and wanted to have some cash available if needed. I have now completed the required time when I could pay off my mortgage without any penalty and my financial situation is sound. Therefore, I wonder if I would be better to get rid of my mortgage altogether, or continue as I am. Are there any possible pitfalls either way?

dimbo61

hi Mick Steel
well done on saving up most of the money to completley offset your mortgage.
:j
You dont mention any other savings ISA,S or pensions !
I would clear your mortgage now and save as much as you can afford
into isa,s and regular savings plus paying into a pension.
If you have sixty thousand pounds in savings ( offset) and you lose
your job you are expected to live off these savings before you would get
any benefits !!!
If you pay off your mortgage they cannot take into account your home.
Your house is paid for and you can use the mortgage money/ extra savings
you have paid into the offset to build up other savings and pensions.
good luck

Upwind

Thanks for the advice dimbo. I was unclear on the benefits issue should I become unemployed again. Think I need to pay of my mortgage and keep up my savings etc.