I am having trouble believing that the interest rates are still remaining so low. I was pretty sure that it would have been put up by now, but am relieved that it has not been. Although I am not getting a great return on my savings, I am getting a fantastic mortgage rate. This is helping me to be able to afford to put by a lot of money each month towards paying off the mortgage. If the interest was higher, this would not be possible as I would be paying some of that money in interest.
I am not sure whether to pay off the balance when I have it all saved up or to invest it and then just pay off the loan when it is due. Loans tend to be more expensive than investments and so it is normally wiser to pay off the loan. However, with a mortgage rate of 0.49 + the base rate, then at the moment I can make more money on investments than I can in paying off the debt. I feel that my money is working harder for me making money than it would be reducing debt.