Paying Mortgage off early

[dissotheref]

I have a small 2nd mortgage. I owe about �3600. I pay �70 per month and it is due to end in Dec 2010. I have �3000 in a building society account earning about 5% interest. Should I put to it and pay the mortgage off and use the �70 to pay off the main mortgage quicker,

[Loosehead]

yes, no contest.

[Oneeyedvic]

Agree with loosehead - obviously so long as there is no early redemption penalty.

 

Also, if you are looking to borrow money in the future, it may be better for you to keep the low amount outstanding, as you could in all likelihood take a further advance without having to pay for new valuations, legal fees etc.

[sandras]

I should use the �3000 to pay off some of the capital on the main mortgage, this could save you �70 each month.

Do a quick calculation on the FSA website to see if this is so.

Once you've weighed up the pros and cons - then decide

Best of luck : )