mortgage free wannabee advice needed!:)

jamesd

It makes sense to pay off the mortgage first, but not so good to defer paying the family off without paying them interesty. What I suggest is that you pay them interest of 0.8 x base rate % x amount owed / 12 each month. About 150 a month at the moment. That'll be reasonably close to what they can get after basic rate tax from a savings account - less, but not hugely less. And then they may be more comfortable with you trying to pay off the higher rate loan first, the mortgage. Perhaps even cutting back payments to them to just the interest allowance, to do the mortgage even faster.

While paying them 400 a month with no interest that's effectively a commitment to pay them back in 9 years and you should try to do that. Given your numbers you can probably do both the mortgage and that even while paying them some interest.