would it be better to pay off my morgage, i owe less than £1,000
2006-11-18 23:52:11 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
I think the answer is no, because your tax relief on the outstanding mortgage is greater than the interest paid.
2006-11-18 23:54:25 · answer #1 · answered by winballpizard 4 · 0⤊ 0⤋
You don't get tax relief on a mortgage any more.
Banks make money by paying a lower rate of interest to people who deposit money with than they charge to lenders. You are probably being charged more than 5% on your mortgage and earning less than 3% on your savings.
If you are earning more on your savings net of tax than you are paying on your mortgage then please let everyone know and we will all take out the biggest mortgage we can and pocket the additional interest. I'm sure you're not in that enviable position.
Occassionally it can happen that you lock into a long term low interest rate and then interest rates in general rise and you've been investing in ISAs which pay your interest tax free and you are getting more interest than your being charged. The instances of this are rarer than rocking horse manure.
2006-11-19 00:37:27 · answer #2 · answered by Mr Politeness 2 · 0⤊ 0⤋
Yes. The interest you are paying on it alone makes it worth while. You might choose to keep a very small mortgage though £25ish if they hold your title deeds. These are very important documents and need to be kept secure. By having a small mortgage it means that your mortgage company will keep them safe for you. Hope this helps.
2006-11-18 23:58:00 · answer #3 · answered by marcel 1 · 1⤊ 0⤋
Probably not as you are receiving tax allowances for having a mortgage. Although on that small ammount, not a lot.
Personally I would pay it off and revel in the delight of being mortgage free!
2006-11-18 23:55:04 · answer #4 · answered by puffy 6 · 0⤊ 0⤋
Wow! If I only owed one thousand pounds or less on mine then yes I would definately. I hate to owe any money to anyone!
2006-11-18 23:59:56 · answer #5 · answered by mistickle17 5 · 1⤊ 0⤋
Have you missed a zero out on that figure if £1,000?
2006-11-18 23:55:53 · answer #6 · answered by reggie 4 · 0⤊ 1⤋
yes!
2006-11-18 23:54:24 · answer #7 · answered by sarah_roo03 4 · 0⤊ 0⤋