Quizzes & Puzzles0 min ago
Pay Off The Mortgage?
15 Answers
I should be inheriting some money before too long. I have about £65,000 left on my repayment mortgage, probably about 15 years. I think the money will be enough to pay off the mortgage, should I do this? I could do with freeing up £500 a month...but are there any reasons to just keep paying the mortgage?
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For more on marking an answer as the "Best Answer", please visit our FAQ.Given that the mortgage interest rate will be higher than any savings interest rate available – your best return will be achieved by paying off the mortgage.
However, if you don’t have savings to last at least 3 months (preferably 6 months), then ensure you have a savings buffer before paying off the complete mortgage.
Don’t forget to check that your mortgage provide will not sting you for some ridiculous charge for paying a lump sum off your mortgage (some do).
However, if you don’t have savings to last at least 3 months (preferably 6 months), then ensure you have a savings buffer before paying off the complete mortgage.
Don’t forget to check that your mortgage provide will not sting you for some ridiculous charge for paying a lump sum off your mortgage (some do).
Generally speaking, Purple Paris, pay off your debt starting with the most expensive to service such as store cards and credit cards.
There's no value in saving the money as Hymie points out: the interest will be lower than the inflation rate.
If you save £500 a month by paying off the mortgage you're debt-free and quids in.
There's no value in saving the money as Hymie points out: the interest will be lower than the inflation rate.
If you save £500 a month by paying off the mortgage you're debt-free and quids in.
A savings buffer is a good thing to have if you're still employed, just in case the worst comes to the worst and you get laid off / made redundant / become unable to work for whatever reason.
However, if you feel your finances are pretty stable and secure, then paying off the mortgage is definitely the way to go.
However, if you feel your finances are pretty stable and secure, then paying off the mortgage is definitely the way to go.
yes pay off your mortgage
if you are adventurous you may think of buying a house to let having done all the sums on house prices, further mortgages and rent.
mortgage interest ( not capital) is now bec oming less tax deductible which means that the window may close
so it might be a good idea in Manchester ( you an expect 5-8% return on capital) and not such a good idea in the south west ( 3%)
otherwise pay off the mortgage and get mortgage freedom
my cousin lost all her inheritance by bad deal after bad deal (she still thinks up bad deals but cant afford them now) and I er didnt
if you are adventurous you may think of buying a house to let having done all the sums on house prices, further mortgages and rent.
mortgage interest ( not capital) is now bec oming less tax deductible which means that the window may close
so it might be a good idea in Manchester ( you an expect 5-8% return on capital) and not such a good idea in the south west ( 3%)
otherwise pay off the mortgage and get mortgage freedom
my cousin lost all her inheritance by bad deal after bad deal (she still thinks up bad deals but cant afford them now) and I er didnt
Martin Lewis agrees, but note the warnings
https:/ /www.mo neysavi ngexper t.com/m ortgage s/mortg ages-vs -saving s/
https:/