Should I payoff my mortgage early?

[jho0001]

I've had a UK mortgage for 8yrs now and in a position to pay of the outstanding amount. Should I pay if off?

- purchased at 76,000k
- mortgage outstanding is approx 23,000k
- now worth approx 210,000k

I have the money in the bank but prob earning less interest than I'm paying on the mortgage.

Please note that the property is not being rented out and I've been living and working in singapore for the past 5.5yrs, property was my main residence for 2yrs before I moved to Singapore.

Thanks

[Simon Sweetman]

This is not a tax question but a request for financial advice !

[Lambs]

J,

S is strictly correct, but to add a little flesh to the bones, (so to speak), there is no tax consequence to a mortgage, broadly, (ignoring IHT and Stamp Duty), unless there is some kind of income stream against which the mortgage interest may be set.

If, as you say, the property has never been let, then there is little foreseeable tax consequence to making good.

The obvious question arises as to whether or not the financial cost of the mortgage is being offset elsewhere : Return on Capital Employed, etc. You are already wise to this: hence your penultimate paragraph.

Regards,

LAmbs