Paying Mortgage off best option in this situation?..

[Hedge]

Mam only owes about £9000 on a mortgage.. 240pm payments..

She has the money to pay this off in one lump.

This would free up the 240 from her wages.. Ontop of this 240 she pays critical illness cover or something. This would no longer be needed since she has the cash available.

Now it seems best Idea to me to pay this off asap because Savings arent worth jack these days. But I also think her mortgage is low interest too.

So potentially putting the 9000 into a savings account and having the mortgage payment come out of their each month might have the same effect but work out cheaper.


Any ideas any sensible folk?

 

[Hedge]

The mortgage has 4 years left on it.

The interest rate on the mortgage is 2.5% which might be quite high? maybe swapping is best?

She has the money but is scared she makes the wrong decision.

She has enough money for a rainy day etc. I mean its nice to have no mortgage over your head but if savings interest works out the better option then it would be silly to clear it.

 

[Hedge]

Thanks for the input guys Ill tell my mam to read some of these points when she gets home later.

Shes very diligent with money, not much risk of her dipping into savings etc.

But we shall see what seems best option