pay off the mortgage or not?

peter1000

Hi everybody got £100000 savings come the end of march got approx £35000 outstanding on the mortgage should i pay it off or keep my capital may be towards another property etc only earning crap money at the moment 18000 a year not sure what to do!!.

lamarsi

Personally I'd Paty It Off But What Do I Know?

ryandj

It depends really on the interest rate on your mortgage and savings. If the mortgage is costing more than having the money in savings is earning you, then your savings are better off being used to pay off the mortgage. You would still have £65K capital, and with no mortgage to pay and owning your house outright, 18K a year would not see you too badly off.

Of course, if the savings rate is higher than the mortgage rate, then keep the money in a savings account and earn a bit more off it.

THat makes sense to me, although i am no expert.

Trying_to_be_good

You might also want to think about what pension provision you have - no mortgage but no pension in old age is still not a good combination.

With £100k about to come in, I'd be off to see an IFA.

chappers

Indeed depending upon how old you are £100K will go towards a decnt pension even £64K would

peter1000

Not bad problem to have i know but i still dont what to do.Another gripe why iam here the return on a private pension about £700 ayear before tax for every £10000 seems like a poor return to me why the hell are MPS CIVIL SERVANTS PUBLIC SECTOR WORKERS POLICE ETC so well rewarded in retirement and the average working man is left stuffed seems abit unfair who the hell can afford to save about £300000 in a private pension to get back about £180000 year!!!:mad:

Trying_to_be_good

Hey - I'm a civil servant and I'm trying to help you here!