To have a Mortgage or not

Isera

This might seem like a silly question but if I have the opportunity of paying off my mortgage can anyone think of a good reason for not doing so!

I do intend to move in 6-9 months time and will be taking out a higher remortgage at that time anyway.

Any thoughts?

MarkyMarkD

If you will be moving in 6-9 months' time, Isera, that won't be a remortgage - just a new mortgage on your new house.

There's virtually no reason NOT to pay off your existing mortgage. The only reason would be if you could confidently earn a better, post-tax, return on the money than you would save by paying off the mortgage - and for most people, that's unlikely. The exception is where you:

(1) have a non-taxpaying spouse (or you don't pay tax yourself) in whose name any savings can be stashed; and
(2) can pay a mortgage rate lower than your savings rate.

Unless you can meet both of those conditions (and it's unlikely you can do (2) over the short term) I should redeem the mortgage and just take one out when you need it in 6-9 months' time.