Paying off mortgage early?

[tspill]

I am paying mine off on Friday.
Well all but £500 as I cant be bothered with the admin.
With Barclays all you do is transfer the money into your mortgage account and it reduces.

[tspill]

Originally Posted by FamilyGWales

I have been thinking about this, but although tempting to do given silly low rates at the moment am wondering whether I can get more money via savings.

I want a higher interest savings account to dump it into, gain interest on that and then use it to pay back the mortgage at the minimum rate so I get the most benefit.

Only problem is finding a suitably higher interest account. Anything over .9% should do it.

But I also.want the comfort of knowing it's paid off, which could be priceless 👍

Any other benefits of paying off v saving?

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If you can get more in savings, then do that. If you are paying 0.9%, the the Post Office ISA is paying 1.3% (one year). When comparing savings rates just check what tax you will be paying as this can reduce your effective interest rate. But you do get some tax free.

Pension is another option. You get the income tax back straight away.

[mexico07]

Originally Posted by disneywiseowl

Just a thought - have you considered where you’re going to keep the deeds?

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No , I just thought they would send them to us , should I do something else? xxx

[Floridarules]

Just a redemption figure and pay it. No need for solicitor.

Can’t beat the feeling 😊

[Guest]

Originally Posted by tspill

I am paying mine off on Friday.
Well all but £500 as I cant be bothered with the admin.
With Barclays all you do is transfer the money into your mortgage account and it reduces.

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Curious about the all but 500 comment. If you reduce it down to that level what is the benefit of doing this over paying it off fully?

Sorry to hijack OP!

[Dinglebert]

Originally Posted by mexico07

No , I just thought they would send them to us , should I do something else? xxx

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In Scotland so had to go to solicitor to have lien removed from house. Had the deeds for a couple of hours but left them with solicitor for them to keep in safe.

[disneywiseowl]

Originally Posted by mexico07

No , I just thought they would send them to us , should I do something else? xxx

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Sorry, I don’t know as previous posters say it’s all done digitally now.
I’m sure someone will post better advice. Lol.

[mexico07]

Thank you everyone, we were one of the many thousands who had a northern rock together mortgage and when it all went sour got transferred to nram and then landmark and have been in mortgage jail paying ridiculous interest ever since , my husbands work pension has just matured and we have looked into lots of options what to do with it and this is the best saving for us and will give us peace of mind knowing that our home is finally ours , we only have five years to go but our interest on what we pay is appropriately £250 a month so we definitely aren’t going to get that return investing it anywhere ! Well done everyone for getting there and I can’t wait till we can say that it is totally ours ! thank you xxx

[mexico07]

Originally Posted by Chair1519

In Scotland so had to go to solicitor to have lien removed from house. Had the deeds for a couple of hours but left them with solicitor for them to keep in safe.

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Oh really ! We are in Scotland too , do you mind me asking if it was expensive? xxx

[Guest]

Originally Posted by mexico07

Thank you everyone, we were one of the many thousands who had a northern rock together mortgage and when it all went sour got transferred to nram and then landmark and have been in mortgage jail paying ridiculous interest ever since , my husbands work pension has just matured and we have looked into lots of options what to do with it and this is the best saving for us and will give us peace of mind knowing that our home is finally ours , we only have five years to go but our interest on what we pay is appropriately £250 a month so we definitely aren’t going to get that return investing it anywhere ! Well done everyone for getting there and I can’t wait till we can say that it is totally ours ! thank you xxx

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What a horrible journey you have had. I read about the mortgage prisons on moneysavingexpert. Sounded horrific.

Glad you have found your get out of jail card. 👍