Advice on paying off mortgage early please

[stirling]

Hi,
I'm a single mum and have been struggling with finances since my ex and I divorced on a clean break. It's not impossible for me to cover costs but becoming harder as my health has been quite bad in the past couple of years.

My dad, whose cancer is spreading has given me money that would pay off the Mortgage should I wish to. Its not a huge mortgage but a burden nonetheless. I've cried buckets this weekend over his loving gesture.

To get to the point, should I pay it all off or leave a tiny amount on tbsre
I can't remember what the reason was for not paying the whole lot off, something to do with credit scoring? Any other valid reason? I'd quite like to get rid of it so that i only pay bills, food, stuff for kids etc. Will help me enormously until I'm ready to return for work, if I ever do - the hospital is suggesting a serious op for me.

Any advice appreciated
Thank you

Sometimes it works out in the long run to pay the penalties on the mortgage as you’ve worked out. Sometimes it’s best to wait a bit and then pay. Could you pay some off using your overpayment allowance and reduce the Mortgage payments in line with this? Therefore you’ve still got some reduction and put your money in a savings account?

I think you should just pay off the mortgage completely. You’ve been under a lot of stress, health problems, financial not coping that well etc. You need less stress and more stability which having no mortgage will provide. Any BTL or other investments carry risks, stress and you need a good financial buffer to even consider them so I’d park any of those ideas.

And credit rating because you have or haven’t got a mortgage is a bit of a non-point.

Pay off the mortgage
Clear any other debts
then build up savings
enjoy

Hi,

Sorry to hear about your dad and that you are having a tough time. My advice would be:

Have 6 months wages as an emergency fund/safety net.
Pay off all other debts.
Clear mortgage with the rest.

Then if you can, save for your long term future and enough to mean you don't need to build up debt in the future.

I paid off my mortgage
I had charges to pay when ever I paid of, so I reduced the mortgage to a ridiculously small amount & asked if they wanted to keep paying for the administrative work every year or just let me pay it and be gone - they wanted me to be gone as it wasn’t worth their while having a mortgage at less than £2k over 15 years. So I’d talk to the lender and look at the small print

There is no particular advantage to having a mortgage and what you used to pay in payments pop straight in a savings account

Remember if you keep a substantial amount of money in the bank it may make you ineligible for some benefits.

I’d pay it off. I think owning the house you live in is a real psychological boost. I can’t wait to pay ours off.

A big thank you again everyone for your warm and helpful replies.

I've decided to pay it off, the burden of it being a significant monthly cost has added pressure and I can't wait to be rid of it.

Thank you for your support

OP, I just wanted to say I'm sorry to hear about your Dad. It's lovely that he can pass on safe in the knowledge that you own your home outright. I hope I can end my days by doing that for my child.

The one thing to check is whether there are any issues with you not working (not sure if you’re in receipt of any benefits) and receiving a large lump sum.