AIBU to be nervous about paying the mortgage off!

[Blondiebeachbabe]

My 5 year fixed mortgage deal ends in November. The current interest rate is 1.54% The new rate will be 5.02% I’ve been saving like mad to get together enough to just pay it off in November. The balance will be £22k. I can do it but somehow I feel so nervous sending that money over and not having it to hand anymore. WWYD? I will have a bit more left in my isa for emergencies. I think it’s just that I’ve never spent that amount of money in one go before.

Pay it! Get rid of the worry and then start saving again. Seems like an excellent use of the money to me.

Kindly, YABU for feeling anything other than proud of yourself for paying your mortgage off!

I'm sure it will be a massive feeling of relief when it actually happens, and a great reason to pop open the bubbly and celebrate!

Go for it OP! Pay it off. Buy a bottle of champagne to celebrate, then start saving.

Pay it and if you did need a chunk of money before you built your savings up you could get a short term loan

How flipping wonderful!! Go for it! And massive well done and congrats x

Oh no, my steak is too juicy, and this champagne is too cold!

You're living rhe dream, enjoy it!

Pay it off and start rebuilding your savings. You’ll never get as much interest on your savings as the interest you’d be paying on the mortgage .

Well done for saving all that money! Get it paid off and then you can keep saving and you’ll have a nice sum in no time. If you can avoid paying that interest then why wouldn’t you

That would be a huge interest jump! Pay it off and breathe a sigh of relief. Worrying about using your emergency fund is understandable, but with applying the same effort again to saving, you'll soon build it back up.

Pay it off, then start putting the money that used to go on the mortgage into savings!

I would definitely pay off the mortgage personally and get it boxed off- congratulations OP!

If the idea does make you really nervous, why not pay off half, move onto a tracker deal and clear the rest over 12 months or something? It is a big jump in interest, however your balance is really low, so the amount you'd be paying won't actually be horrific

Pay it off. It changes your whole mindset about feeling just that bit safer and freer when things like horrible bosses / managers / directors happen at work etc... Somehow you are stronger because you've lost a fear / vulnerability. You can rebuild savings (and have fun ✨️)
Congratulations 💐💐💐💐

Thanks everyone!! I think I just feel nervous about losing my nest egg! 😂 Something happened recently whereby I needed to lay my hands on some money to help one of my adult children , and I think that’s what’s panicking me, the fact that sending most of my money away gives me less resources. But mathematically it does make sense!!

I scrimped and saved to pay mine off, I think I had £500 in savings left! But it was such a relief to get rid of the mortgage and ever so quickly I’d built back up my emergency fund and more. Best thing I did.

Pay it! You’re in an amazing position that you can do that.

As others have said, if you really needed the money a short term loan would be a cheaper option.

I am in a spookily similar situation. It is scary handing the money over, but the new interest rate I'd be facing otherwise is more scary.

There's nothing like the feeling of standing in your own house the day you pay off the mortgage knowing that it's yours. Completely. 100% yours.

Pay it off. Celebrate. Then continue saving again.

Ha, I thought it was only me who felt like this! Our 1.68% deal is coming to an end and I’d arranged a new fix of 4.17% but due to an inheritance my H received we are in a position to pay it off at the end of the fix. We will still have a buffer of a decent amount of cash but I still feel anxious about it!

We were recently in a similar situation and have paid off the mortgage. It’s such a relief, feels so good to have the security of owning our home outright. And without those monthly payments the savings will soon accrue again.
congratulations OP!

It’s weird isn’t it ? I had to help one one of my kids recently and my fear is leaving myself with not much liquid money if the other one needs similar help.

I would not leave yourself with no savings. I’d keep enough to live on for 6 months. You can always pay your mortgage down not pay it off entirely.

I will still have a buffer for emergency

You can pay the mortgage amount into Savings each month and build them up again.

Sorry are you saying the mortgage balance wheh your current deal ends will only be £22k? That is tiny! Even at the higher interest rate the payments won't be that much surely. I would overpay as much as possible but I wouldn't want to pay it all off in one chunk. I'd rather keep some savings and pay the mortgage off steadily.
But I only got my mortgage in 2023 so interest rates of 4 or 5% are completely normal to me, and I owe the bank about ten times what you do!

defo do it. get a figure for what you owe including fees. pay it all.

if you pay off a lot of it but not all, your existing lender may not give you the option of a cheap fix on the low balance anyway!!

pay off your other debt with higher interest rates first but keep your credit card so you can use that for dc if required.

congratulations!