What would you do in my situation?
I’m currently on a 5‑year fixed term with Gatehouse, ending in February next year. My rate right now is 3.75%. After the fixed term finishes, I expect the rate to increase to around 5.5%–6%.
I have 20 years remaining on the mortgage, and my monthly payments will likely rise to about £2,000 after February. I’m considering whether I should pay off the mortgage completely.
If I keep the money in an Islamic bank, I only earn around 4%, and I would still have to pay 40% tax on the profit plus zakat.
Do you have any advice?