Should I pay off my personal loan early?

[Sslink]

So I took out a small personal loan in April 2022 to fund the purchase of a car.

Loan Amount: £10k
Term: 36 months
APR: 2.8%
Mumfly: £289.77

Total payable: £10431.72

As of today I have 6.5k balance remaining.
I have the money to pay it off today, however, it's currently sat between a S&S ISA which YTD has returned 8% and 34% since 2019 and an instant access savings pot (3.7%). If I did pay it off, I wouldn't have much left, ~2-3k, but I would be £290 to the good each month going forward.

We do also have our first baby due in October and we're staring down the barrel of increased mortgage interest rates. Mortgage Interest currently 2.4% until October '24 when the ported fix ends and then Oct '25 when the "new" fix ends.

Is it worth clearing the decks of this debt, even though it's pretty low interest?
Should I just keep ploughing cash in to the savings/investments? Riding the delta between the loan and savings?
Note: this is a dual income household, however, this debt remains largely my own for what it's worth.
Thanks.

[six wheels]

Firstly, congratulations!

So you have something like £8k on hand (enough to settle the £6.5k debt and leave £2-3k over).

If the monthly payment is affordable, I’d suggest keep the pot of cash available as the total interest you’d pay over the term is relatively small.

Presumably you can decide to pay it off in a few months as/if things change?

[markiii]

stick the cash equivalent of the loan into a high interest account would surely be more sensible? no risk and guaranteed more interest than your paying

[MondeoMan1981]

I've a similar situation OP.

Car loan £10k outstanding but the rate is 2.9% and my savings are 3.75%

There's also the possibility of borrowing in the next few months so leaving that loan outstanding is cheaper than taking a new one!