mortage free or keep mortgage

Hi guys, am after a bit of advice please

I've got £24k left on my mortgage - 2.75% rate - which means I pay roughly £50 a month interest
I've got about £35k in savings so I'm lucky that I'm mortgage neutral now :-) £53k salary 45 years old ! 8 years left to go on mortgage (but 2 realistically)

My dilemma is I'm thinking about selling my house to move to the country. My house is worth around £280-£295k. Not sure what I want to pay for next house but will be around the £300k mark maybe more ...

Do you think it's better to pay my mortgage off now so that when I sell I get all the equity and if I need to take another mortgage to boost funds then do that - OR - keep my mortgage, use my savings for the expenses (stamp,moving costs etc) and then top-up my existing mortgage if needs be ... AND/OR stop overpaying mortgage now and increase my savings pot to use towards equity of new home ???

It's been my dream to be mortgage free and I've worked hard at reducing the balance (£800 monthly overpayments), but becuse I'm thinking about moving (to be with partner who has no equity - always matters of the heart causing issues eh? lol) I'm at a quandary!

Any viewpoints gratefully received - it's a first world problem I know so this is not a stress issue so I won't get offended by any contentious replies lol

Thanks
Mundi

Comments

  • kitjos
    kitjos Posts: 223
    First Anniversary First Post Combo Breaker
    Forumite
    Not got any advice on what you should do etc (im quite new to this OP lark), but just want to offer my congratulations on hitting such a milestone :beer:. You've clearly worked hard to get where you are now. Enjoy your next house move whenever that will be :) x
    "Don't underestimate the value of financial security"


    Wanting to be mortgage free by 45. £155,000 start / £86,880 currently

  • If your 35k savings are getting a better interest rate than your mortgage, keep it saved. If not pay the mortgage off!
  • Hello

    I'd probably suggest keeping the cash for now. I imagine extending current mortgage would be easier/less time consuming than re-applying. Based on what you say, it doesn't look as though you would need much more on a mortgage anyway. Depending on where you choose, you will get a lot of property for £300k if you want to be really rural

    Bexster :)
  • Hi guys,

    Thanks for the advice. I think keeping the savings is probably the easiest. Unfortunately you don't get that much house for your money in rural Bath & North East Somerset !
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards