AIBU to want to pay off as much of mortgage as possible?

[SoMuchPain]

We're in a situation where we have 2 years left on our mortgage (it's a 5 year fix). We were discussing yesterday what to do wish a small inheritance (5k) I suggested we pay off our mortgage (or a very small part of our mortgage).

DH undecided - if we can save a little more perhaps considering buying another property but I think while we have a low rate let's pay off as in 2 years time with Brexit looming who knows what will happen with interest rates? We have no other debts.

AIBU? What do you think will happen to interest rates because of brexit?

Iadore they are currently on a fixed rate mortgage for 3 years so they now exactly what their rate is now and no-one knows what rates will be available in 3 years.

So they currently pay 3.1% (which is about the rate for a 5 year fix now) on say £100,000

If in three years the rate has gone up to 5% then they pay the £8,000 off the mortgage and remortgage for £92,000. They will have paid £740 more interest on their mortgage which would be offset against any interest they earned on the £8,000.

Or they can make their mind up based on their financial position at the time.

If you have plenty of spare money then keeping flexibility by keeping the money in savings isn;t probably worthwhile but if you don;t then easily accessible cash can be worth a lot

Thanks Kew I can't get my head round that will ask dh to take a look and try and explain

I have always tried to reduce my mortgage. We had an extra 5k a couple of years ago and I paid that off the mortgage and knocked 7 months off it. The more equity you have the better loan to value so better rates. I have been trying to get the mortgage cleared before dh retires so we don't need to use his pension lump sum to clear it.

However recently a few people I know have died very young, not long after retirement so I am now thinking life is too short and we will use our money to enjoy ourselves. I still intend to overpay on the mortgage but not as much. Luckily we earn a decent salary and my dh has a pension already so when that goes up in a year we will increase our payments and reduce the term but we will still put money in savings for holidays and things.

Thanks for advice ladies. We've decided to buy something to remember by, we're going to pay some off the mortgage and put the rest into a share ISA