Save or pay off mortgage?

[Livingtothefull]

I have approx. £40k in savings and about £30k left on my mortgage....have been living frugally for years to both save and pay the mortgage down. But I am quite disappointed in that my savings haven't accumulated the way I hoped; interest rates being so low, the money has basically been just sitting there not doing anything much. But mortgage repayments are low too.

What I have in mind to do is pay the mortgage off and still have a £10K emergency fund, and keep saving. I am working on a contract which is due to end November....may not get another job straightaway so I will need the fund. It is an interest only mortgage so I have to pay it off. I want the security of owning the home outright

But I will probably want to re-invest in property in the near future (upgrade to a bigger home and/or a buy to let) & want to start planning to do this once I have longer term work. Would it be better to start again with a new mortgage, or keep the existing mortgage going (probably convert to a repayment) and transfer to the new property?

I would prioritise owning my house outright, particularly if paying off mortgage still left meca decent wedge of savings.

I would pay it off as rates are likely to rise soon

What about an offset mortgage? Gives you more flexibility? Especially with contracts?

Thanks all, for confirming my thoughts on this. Yes I want to pay this off while interest rates are low....want the security of knowing that whatever happens, my home is at risk. If/when I remortgage, yes I want flexibility in repayments, again I will be trying to pay it down as quickly as poss.

I just feel that my savings are just sitting around and not 'working' for us......it has barely appreciated at all on what was originally paid in (over 12 years).