Inflation and paying off tracker mortgage

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Frugalliving

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Hi, should I pay off my tracker mortgage in full? Have savings which would cover outstanding balance. Currently Ecb rate plus 0.5% interest. Thank you
 
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How much is left?

Generally 0.5% is very cheap.

Now paying .5 + .5 = 1%

If ECB rates go up to say 2.5% (paying 3%) consider then.
 
What is your cash earning on deposit?

If it’s less than 1% you should just pay off your mortgage, all things being equal.
 
Hi Frugal

Yes, it's better to pay savings off a mortgage than to leave them on deposit.

But it may be better to contribute to a pension.

You should do a full Money Makeover in this forum.

Money makeover

Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .
www.askaboutmoney.com
 
We didn't pay off ours, at .5% ,as it was a cheap way of storing the house deeds. Now that it has gone to 1%, it is probably cheaper to pay it off and store the deeds ourselves. Mortgage is only around 26k, so it's not much either way.
 
In a similar position - 35k and 5 years left on 0.5% with the guts of 200k savings so paying it off and maxing out avc’s.
 
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