paying off a mortgage

[baldy1926]

Hi just a quick question. The other half has a small interest only mortgage, she has enough savings to pay the mortgage off. Would it be best to use her savings to pay it off or keep the money in something like a 2 year bond and use the interest too offset the payments.
The mortgage only has 7 years to run and the current deal ends in 2 years.
Thanks

[marcosgt]

Can she earn more on a bond that the interest costs for the mortgage?

M.

[baldy1926]

Hi at the moment its with the nationwide and its a tracker + 1.44% which ends in 2013 so its too early to know what would be available when this one ends.