Would you pay your mortgage off?

[MENTALMUM]

I am lucky enough at the moment to be able to pay off my mortgage and I am unsure whether to or not. Its not huge and is due to be paid off in two years anyway. I have a small amount of savings that I know would cover what's left to pay. However I also need some work doing on my house( its 150 yr old terrace).
If I paid off my mortgage I would, at some point have to borrow to complete the work, so seems like I would just be better keeping the mortgage for the next two years.
I could re coup the money I use to pay off my mortgage by paying the monthly mortgage payment back into my savings but his would take a while.
I know its a first world problem but I really do not know what to do for the best and my Mortgage is coming to end of its fixed term very soon so I need to make a decision.
What would you do?

[Guest]

If it’s coming towards the end if it’s fixed term then it might be worth having a look at some possible rates and new monthly payments (most banks have online calcs to get an indicative rate) as then you’ll be able to make a better choice. If the payments go up a bit due to rates increases it might be better to pay off.

[Floridarules]

I would pay off my mortgage as that’s what I did. Others may have a different opinion as you are thinking of doing some work on your house.

Surely having paid off your mortgage, this will free up some more income which you could then save for the building work?

[sully301]

I would keep the mortgage as the amount saved in interest would be a lot Less than taking out a loan.

[m84ourlife]

If you only have two years left on your mortgage your paying more off the capital of the loan rather than the interest .Pay it off but keep saving what you would of been paying in mortgage towards your renovations

[Clare]

Personally if you can afford to do it I would, I hate owing money (psychological thing with me) and am I feel fortunate to now not owe anyone anything.

[sha9]

If you think you’ll need money for home improvements I’d just keep the money and wait until the mortgage is paid. A loan is going to be significantly higher than the mortgage rate, especially now.

[mitch84]

I think it depends on a lot of things, how much the house renovations will cost, when you expect to do them and loan rates etc
To be honest I’d pay off the mortgage and save up for the renovations, but I have to be quite careful with money

[Mrs sun]

Pay it off, it’s the best feeling ever!

[lizzie145]

I would keep the savings and continue to pay the mortgage as you never know what may happen in the meantime.
It sounds like you need the savings for the work on the house at some stage.