Now that intrerest rates are clearly going up for the next year or so, I have a big decision to make.
I have a mortgage of 180,000 and savings of 185,000. However, I also want to buy a bigger place at some point within the next couple of years.
So, should I clear the mortgage now and enjoy the benefits of no monthly payments for a little while? Or, given that I am benefitting from 20 per cent mortgage interest relief, is it better to suffer the interest rate rises, keep the money on deposit and use it to minimise the mortgage I will need on the new property?
I know this probably depends on when I buy a new place, but as a general rule what do people think?
I have a mortgage of 180,000 and savings of 185,000. However, I also want to buy a bigger place at some point within the next couple of years.
So, should I clear the mortgage now and enjoy the benefits of no monthly payments for a little while? Or, given that I am benefitting from 20 per cent mortgage interest relief, is it better to suffer the interest rate rises, keep the money on deposit and use it to minimise the mortgage I will need on the new property?
I know this probably depends on when I buy a new place, but as a general rule what do people think?
