Pay off the mortgage?

[Avinagiraffe80]

I realise I’m in a fortunate position but would appreciate some different viewpoints in case I haven’t thought of all options.
DH and I have £25k remaining on our mortgage (tracker at 0.89% above base rate) which will take around 5 years to clear at current payment levels. We also have £25k in a savings account (2.3% easy access) which we could use to pay off our mortgage.
We have an additional £20k in 3% easy access savings accounts so we’d still have a buffer for emergencies. We both work full time and our jobs are as secure as anyone’s can be nowadays.
Writing this down, it looks like a no-brainer to pay off the mortgage as it’s costing more in interest than I earn in savings interest. I’m a naturally cautious person so maybe this is why I can’t take the leap but is there any downside to paying off the mortgage that I haven’t thought of?

Pay it off now

then the money you would pay towards mortgage put back each month into savings

or I would buy premium bonds each month and maybe win a million

blondes dreams

You sound risk-averse so I'd say pay it off. You'll get great financial freedom and security of having a roof over your head no matter what.

However, only pay it off if you do have some money left over in case any thing happens. Car breakdowns, boiler breakdowns etc can be sudden and can be costly.

We paid ours off last month, we had £21k remaining and similar savings pots, fairly secure wages. The increase in monthly payments on a mortgage that size felt ridiculous as they weren’t including any of our overpayments in their calcs. Our intention is to have December off and then start putting the mortgage payment back into savings with the hope of clearing it in 2.5yrs. I don’t feel any different for clearing it off however… maybe I might once the savings are topped back up.