Mortgage or Savings?!

I have a mortgage of £78,500 which I am paying interest only at £301 per month.

This mortgage deal ends in April but I do have the savings to pay it in full. The savings at present earn interest of £300 per month.

Am I better to pay the mortgage in full or look for a better deal and earn interest on the balance, and are there any repercussions in years to come with this

Catherine

Replies

  • Trying_to_be_goodTrying_to_be_good Forumite
    2K Posts
    Part of the Furniture 1,000 Posts
    Forumite
    Do you have any other savings? General advice is to keep 3-6 months worth of outgoings in easy access savings, so make sure you keep this 'security blanket'.

    If your savings are in tax-free accounts, or are otherwise earning a higher interest rate than you'll be paying on the mortgage, they're probably better left where they are.

    Otherwise, if it were me, I'd be paying down the mortgage as far as I can! Well done for having such a good amount of savings!
    Mortgage Free thanks to ill-health retirement
  • what an interesting dilemma! you must have a cracking rate on your mortgage - will you be able to get another deal to match it?

    what will be the fees for a new mortgage, and how would these compare with any redemption fees for paying off the mortgage?
    weaving through the chaos...
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 this Saturday

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals