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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Is paying off as much of your mortgage as possible best here?

34 replies

Chahat · 03/03/2026 13:43

I am due to renew my mortgage at the end of the year. I am overpaying 600 a month. I have saved 150k to put towards it when it comes to renew. This will leave a balance of 120k, so will
vastly reduce the repayments and could probably clear it quickly after that. The overall market value of the house is estimated 550k.

I am a single parent and have nobody to talk about this with. I feel so much weight with these decisions and simply dont know if it’s best. Sometimes I read paying off mortgage early is silly as it’s low interest. I am late 30s and feel like I am approaching middle age totally alone in every sense. What is best? I looked at a financial advisor but they are so expensive.

OP posts:
Newgirls · 03/03/2026 14:00

I’d save six months wages and pay the rest off. Well done!!

Fletchasketch · 03/03/2026 14:00

I think this all depends on your objectives. If you want security (and who could blame you there) the clearing the mortgage is the obvious choice. Is it likely to be the most financially sound route? No. If you are looking to maximise your wealth, then as much of your savings as possible are best off being diverted to a stocks and shares ISA or potentially a SIPP. The returns are likely to be around 8% a year, whereas your mortgage is likely around 4%. As a personal example, I would have saved £1660 over 3 years by overpaying my mortgage. Instead I have used what I would have overpaid to buy funds in an S&S ISA, these funds are now up by 27.5k, for me it's a no-brainer, but your situation and tolerance for risk may be very different. I sometimes use Chatgpt (the free version) to check my logic when it comes to investing/overpaying/pensions and get some good advice (though it's not flawless) and so it might be worth giving that a go.

Good luck :)

P.S congrats on saving such a huge amount, that's amazing on one income!

Bigcat25 · 03/03/2026 13:58

The finance person I listen to always says that she wants your money acessible for an emergecy or big expense. So, you could think about paying some down, but leave yourself with a good amount of liquid money as well.

An emergency fund shouldn't be invested in the stock market as it's volitile, but a high interest savings account, GIC or similar would be fine. If you have extra beyond that, you can invest long term in the stock market to get the higher interest rate returns.

plentyofsunshine · 03/03/2026 13:55

What's your mortgage interest rate and what is the highest rate of interest you could get in a savings account?

Cyantist · 03/03/2026 13:55

Are ISAs maxed out? I am getting as much in my ISAs as the mortgage rate is yet I have the flexibility of having a big chunk of cash if I need it.
Once you pay it off it's not so easy to get it back out again for whatever reason and I got stuck with this problem previously. If you do pay some off make sure you keep a big chunk back for every eventuality you could possibly think of

APatternGrammar · 03/03/2026 13:53

What is the interest rate on the mortgage and what interest could you get on your savings elsewhere?

Meadowfinch · 03/03/2026 13:52

LadyDanburysHat · 03/03/2026 13:46

As long as you have a decent buffer of emergency savings for anything that may crop up then that seems very sensible.

This. I'm a single mum too, and I've been paying off chunks, while making sure I had 6 months money tucked away.
I was made redundant during covid and it took 7 months to find a new role. Extreme circumstances but that's the worst I've hit.

WannabeMathematician · 03/03/2026 13:49

I don't think we have enough info to say. I'm not advisor so don't want to give advice, but do you have dependants, do you have a good pension, do you have a rainy day fund? These are all questions that you need to answer for yourself.

Also have a think about what you want to do in the future. 5, 10, 20 and 35 years for example.

LadyDanburysHat · 03/03/2026 13:46

As long as you have a decent buffer of emergency savings for anything that may crop up then that seems very sensible.

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