Pay mortgage with savings?

[Kate00]

I have a �53K mortgage which i started paying 5 years ago when i bought my house. The mortgage is set over 25 years. It has now come to the end of the 5 year fixed term so im going to choose a new mortgage. I have managed to save �10k and im wondering whether to put this into the mortgage to reduce it or leave it in my savings?? Please help as im clueless!! Thanks! Kate

[anniebird]

Look at an offset mortgage as the �10k will reduce the interest charged on the mortgage. This will mean the money will still be available to you if you need it. Also as you will not actually be paid interest on your savings you will not have to pay tax on it.