Took 10yr Fixed Mortgage out in Jan 2007(when I bought flat) and the plan has always been pay it off in 10 years.

Fixed Interest rate is 5.18% which considering Interest was at 5% at the time was really good.Although if anyone has seen Marty Mcfly and that Doloreon let me know as I would like to go back to 2006 and take that Woolwich Lifetime Tracker of BR+0.69% !!

Monthly payment was £567.45 which is and still is cheaper than renting a flat like I have(the tenants who were renting it from previous owner were paying £600 p/m in 2006.) For the last 7 years Ive been making extra monthly payments under the overpayment limit of £500 of £475 to start with and then £499 p/m. This has meant 7 years in that the balance is now within reach of paying off in full with savings. Normally this would be a no brainer as the Mortgage interest rate is more expensive than the amount of Interest I would loose with the saving rate. The money is in a Santander 123 account earning 3% and looking at the amount of interest a month Im receiving then by using the money in the account I would be loosing around £40 p/m in Interest.

As the mortgage is a 10 yr Fixed then its had an early repayment charge on it and at the moment,if i was to pay it up 3 years early than I was then the early repayment charge would be £1100 plus when you add the interest lost from the saving account of approx £1500 over 3 years of using the money then it works out that it would cost me £2500 in lost interest and early repayment charge. However If continue to keep paying as I have been then over the next 3 years it will cost me approx £2100-2200 in interest but no early repayment charge as I would let it go over the 10 year and then pay it off the month after.

With the problems with the management company and unacceptable way they except this block of 12 flats to fund the whole street from the service charge and their ability to be able to penalise the other residents of the street for dumping rubbish not only in the bin rooms but now they are locked and the relevant flats have the combination then people on the street just seem to pile it up outside now with the obvious consequences.

Once the flat is paid off then Im going to sell the place and pocket the money until I see something else I like the look of and would also use it as a good opportunity to get the **** out of London and Commute in for work.

Over the next 3 years the interest will continue to drop that Im charged on the mortgage.If I was to continue making the payments I have over the last 7 years next years Interest would be approx £1500(Dec 2014) next year and the year after (Dec 2015) £1000 and (Dec 2016) a few hundred probaly as there will not be much left capital then and the early repayment will have then finished as well but this reduces each year and dropped £300 over the last year. As the interest is calculated daily on your new balance then its difficult to work it out to the exact amount monthly as Ive only got yearly interest rate thus my calculations of what the interest would be are estimates.

SO after all that,who is still with me? Do I pay the mortgage off and pay the early repayment charge and loose the interest from the 123 account which would be £1200 ERC and approx £1500 lost interest from the Santander account but would mean its all payed off so the £1000 a month Im paying now £567+499 I wouldnt need to pay anymore for the next 3 years and that can go straight into the Santander account and start earning interest or carry on earning interest on that amount in the 123 and just carry on paying the mortgage as Ive done for next 3 years but paying interest on the balance all the time?