Should I be truly mortgage free?

crockpot

I have an Offsett mortgage and hope to pay off in 2-3 years, HOWEVER should I pay it all off?

I am able to have a future reserve, so I could ask for £10K, put it into my savings pot and not pay any interest on it. To acess when original mortgage paid

Reason i am asking is that we could do with a new kitchen, not point in new doors as carcuses are rotten! But do not want to do it now as, want to save interest by paying mortgage off early.

Interest rate on mortgae is 6%.

So future reserve or normal loan for amount of `old` mortgage? Which would be cheaper?

Thanks

Eydon

Similar story for me. I've been in a position to pay off my offset mortgage ever since I moved house almost two years ago. Thing is it's handy knowing the money is there if it's ever needed - no applications or anything - and because I have full offset it's not costing me anything to keep it.

But then that is also the problem. Because the money is so readily available it is very tempting to dip into it with the promise of paying it back later.

scottish_lassy

Hello Crockpot

I have a tracker repayment mortgage which I brought down to a £7 balance 5 years ago through overpayment and lumpsum payments. I have kept the balance at this as it only costs me 6p a month(!) and
1 I have access to the money if it is ever required,
2 There is an early repayment fee if I pay off early (at the moment it is costing the bank more for the administration for the next 15 yrs
3 My deeds are being kept safe for 6p a month

:rotfl: :rotfl: :rotfl:

Jonbvn

scottish_lassy wrote: »

3 My deeds are being kept safe for 6p a month

:rotfl: :rotfl: :rotfl:

SL,

Deeds are now stored electronically by the land registry. This means that it is not essential that paper copies are kept safely.