Should I pay my mortgage off?

bororooney

Hi all a Newbie here.

A bit of advice/ discussion required.

I am in a privileged position of being able to pay my mortgage off very soon but not sure I should. Strange you might think but hear me out. Currently I have a One Account offset type mortgage so as you would expect all my savings are in there with no other assets (apart from the house) to show for. If I were to pay the mortgage off and close the account down I would literally have no money saved and would be living off my current wages but I would be mortgage free (before I am 40!!). Anything I wanted to buy from then on would have to be saved or borrowed. But if I were to keep the account open I have the facility to borrow any future monies(upto 30K) at the mortgage rate..approx 5.25% i think!

Is there anybody out there who is or have been in a similar position? Any advice/ comments would be most welcome.

bororooney

ps: could I invest my savings in something else whilst keeping the mortgage account going? food for thought.

minimike2

Pay it off but dont close the account....reduce the limit down to a sensible level and keep it there in case you need it.

Conrad

Personally I would feel ill at ease without investments. You'll need £1m in the Bank to retire on a reasonable wage say at 55. Downsizing at retirment now adays often wotn produce much of a cash surplus (say £150,000 - but that would only give an income of about £8000 pa with no state pension until 65) and anyway, who wants to downsize!

I like to strike a balance and have tried to plan carefuly for an early retirement.

I personally would invest in property either here or abroad, but trust me finding the right investment is not easy - Ive learned so much whilst Ive been doing this that I wish I'd known a while back.