if you could pay off your mortgage would you?

[OilyRagMan]

Im sure this is a silly question with only one answer but i need a bit of help to justify this, as my understanding of finances arent to great......

should i pay off my mortage?

if someone could supply some simple finantial justification as well it would be greatly appreciated.

Thanks
ORM

[animal44]

Mortgage is cheap money. Depends if you can get a better return...

[philbennett]

Plus depends you view on inflation, if you think it will stay high then its even cheaper to stay in the mortgage.

However having said all that depends what you do with the cash that was going to pay mortgage - obviously if you piss it up the wall instead then....

[Brown and Boris]

Unless itis in an ISA, anywhere else and you are paying 22% or 40% tax on the interest. I wouldn't dabble in the stock market at the moment, and unless your mortgage is on some incredible offer I would be rid. Post office bond is paying 7% for 12 months which might just about be a beter option.

[UpTheIron]

OilyRagMan said:

Im sure this is a silly question with only one answer but i need a bit of help to justify this, as my understanding of finances arent to great......

should i pay off my mortage?

if someone could supply some simple finantial justification as well it would be greatly appreciated.

Thanks
ORM

If (as you suggest) finances aren't your strong point, and if you need to ask the question then I would suggest that paying off your mortgage is probably the best way for you to go.

[Ash 996 GT2]

Yes.

I really do not care how much it saves to keep it going, once it is yours no one can take it away.

IMHO

[jeevescat]

Like a shot, can't wait to be rid of it.

[Wacky Racer]

If you can afford to, pay it off no question,... does not need any thinking about (imo)

[tvrolet]

Absolutely

Irrespective of the cold financial merits (or not) of a low interest mortgage versus cash in bank/investments/whatever, life's just a whole lot less stressful, and that's hard to beat.

[Eric Mc]

Same here.

Cleared in May this year.

I am watching all this house price panic with a nice sense of detachment and smugness.

[2 sMoKiN bArReLs]

..yep, gives you a great sense of security, and even if a mortgage is cheap money you wouldn't get more on deposit..

[driverrob]

Paying my mortgage off early was the best financial move I ever made.
If you can find an investment for your money (this assumes you have some spare, to be thinking of paying your mortgage off) that guarantees a better rate of return after tax than the mortgage interest rate you're paying we'd all like to know.

[edb49]

coyft said:

Consider an offset mortgage. Instead of using the funds to clear your mortgage, you fully offset it. It's exactly the same as paying your mortgage off but you get to keep the money for a rainy day.

I've always wondered about offset mortgages - are your savings guaranteed against the loan on the house? E.G. If there was a run on the bank and you had £200k of savings and £200k mortgage, gov't scheme pays out ~£35k, do you still have a £200k debt that the bank's administrators sell off?

[sploosh]

Pay it off. Its yours.

Then think about what to buy with YOUR money.

[SLacKer]

I have a flexi mortgage and have pushed it down to virtually nothing. If I pay it off I lose access to the tens of thousands I have paid down over the years. Must say it is tempting to just get rid of it although there are some costs involved.....

[srebbe64]

I paid mine off about 6 years ago - one of the best things I've ever done. Once you've got shot of a mortgage you never want one again!

[ginettag27]

I know some who didn't pay off all their mortgage but did pay most of it off.. Say 1000 pounds. Their thinking was twofold, the bank keeps the deeds, so you don't have to pay someone to keep them for you and also it maintains the contact with the bank, if they need something at a later date it makes it easier, otherwise the bank won't see you as a longstanding customer..

[SLacKer]

anonymous said:

[redacted]

I never knew that. I have mine with Bank of Scotland and will check this out with them. I do like the idea of having no mortgage although the council tax is 2300 round here which is more than I used to pay mortgage wise when I bought my first flat.....what a bloody ripoff.

[.. al]

Oily,

That would depend on your circumstances. Whats the remaining balance (is it modest or massive?), is your income likely to change dramatically either way and could what you might otherwise do with the capital be better invested? How old are you, might you be able to invest the money in a pension for instance, which might better serve you? What do you want to do long term?

One size doesn't fit all.

OilyRagMan said:

Im sure this is a silly question with only one answer but i need a bit of help to justify this, as my understanding of finances arent to great......

should i pay off my mortage?

if someone could supply some simple finantial justification as well it would be greatly appreciated.

Thanks
ORM

[OilyRagMan]

My current situation is i can afford to pay my bills and mortgage and live a relatively comfortable life. I can’t foresee my current wages dropping hopefully only growing. I have a final salary pension in my current job. The mortgage itself I would guess on today’s terms is relatively low <100k
The general circumstances for the money are... it is inheritance from my grandparents. It is to be put in managed trust for myself and my brother to be used as and when we need it my brother as yet doesn’t have a house so he would take the same amount of money out when he gets a house. I would either pay a similar amount back into the trust on a monthly basis or into another long term account for when I need to upsize my house or something else comes along that requires a large amount of money.

Sorry for being vague on the figures but I don’t want the whole world knowing my financial position

.. al said:

Oily,

That would depend on your circumstances. Whats the remaining balance (is it modest or massive?), is your income likely to change dramatically either way and could what you might otherwise do with the capital be better invested? How old are you, might you be able to invest the money in a pension for instance, which might better serve you? What do you want to do long term?

One size doesn't fit all.

OilyRagMan said:

Im sure this is a silly question with only one answer but i need a bit of help to justify this, as my understanding of finances arent to great......

should i pay off my mortage?

if someone could supply some simple finantial justification as well it would be greatly appreciated.

Thanks
ORM