ChatterBank0 min ago
Pay Mortgage Off Or Save?
2 Answers
Say I have I mortgage remaining of £80K, value of property is £300K. I have enough saved to pay the mortgage off in full (with no penalty fee), but I am earning more interest on the savings ie the credit interest on the savings account is more than the debit interest I am paying on the mortgage rate, what would you do ? And I do not want to move house immediately.
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Well you are a fella one in 60 m
your savings are churning out more than your mortgage debt interest
have you counted tax ?
on the figures it would be silly to pay off the mortgage
BUT I think there is enough evidence for a recount ( like NO-ONE earns more on investments than a mortgage...) I assume you dont own a bank
and once you have convinced yourself that like hte rest of us....
pay off the mortgage.
unless you are letting...
your savings are churning out more than your mortgage debt interest
have you counted tax ?
on the figures it would be silly to pay off the mortgage
BUT I think there is enough evidence for a recount ( like NO-ONE earns more on investments than a mortgage...) I assume you dont own a bank
and once you have convinced yourself that like hte rest of us....
pay off the mortgage.
unless you are letting...
Even if you are paying more interest on the mortgage than the interest you are getting on the savings – I would advise caution against having no savings for a rainy day.
So if you do pay off some of the mortgage, ensure that you have at least 6 months of cash reserves for emergencies such as job loss or other unexpected bills.
So if you do pay off some of the mortgage, ensure that you have at least 6 months of cash reserves for emergencies such as job loss or other unexpected bills.
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