Should I pay my mortgage off early?

[hugoagogo]

We are in the last couple of years of our mortgage, the amount left is less than our savings.
We are planning to sell and buy somewhere smaller, no idea whether we should pay the mortgage off or save the cash for expenses?..

What interest rate are you paying and is it fixed? You might need to get some figures down to help people work out what the best option is.

Why don't you put the house on the market now and move to a smaller place if you're going to do that in two years anyway. That will take care of the mortgage without having to use up your savings if you're going to downsize.

I don't see the point in waiting.

Does your mortgage company allow this without charging. I always thought we couldn’t pay off our mortgage, but it was allowed and I paid it off early and saved a lot of money in interest payments.

If you’re not in a fixed term product you could likely pay it off without being fined for early redemption.

(There will be admin fees at the end. There usually is anyways. Mine are a good few hundred quid. So expect that whenever you pay your house off)

Once the house is yours with no mortgage, you get the title deeds to keep safe. Probably by paying the bank to keep them or your lawyer? This costs money.

So you’d have to work out if the safe storage cost for the next year(s) is more or less than the interest you will pay on the mortgage between now and then?

The interest rate is 5.46 and it's not fixed.
What I am trying to work out is if there is any advantage to owning it outright when looking to sell and buy somewhere else? Other than not having to make the mortgage payments, obviously.

How's your pension? Do you have an employer contribution pension? I was advised to put more into that rather than paying off my mortgage as in the long run you are getting better value for your money. I do have a really good employer pension though but worth looking into. I think being mortgage free is psychologically freeing but not always the best financial choice.

With an interest rate that high you'd probably be best paying most or all of it off.

If you wanted a bigger mortgage on your next property than I think it's wise to keep your current one running but as you're downsizing the property will probably be cheaper.