Money Help

[Rammy Blue]

Drugs and whores.

 

[Kinkybyname]

pay off your mortgage

 

[Mid Wales blue]

Drugs and whores.

And my Mrs always wonders why I’m skint!

 

[chris85mcfc]

pay off your mortgage

Nah don't do that, you can earn at least 5 or 6% a year putting it into a fund ISA through a decent broker.

I'd rather have my money earning 6 or 7% a year and compounding, rather than paying off a debt which is probably costing 2 or 3% (depending on your deal etc).

As someone else said, speak to a FA, but I can almost guarantee they won't suggest paying off your mortgage.

 

[MCFC Wirral]

Being mortgage free is an absolute relief. I could’ve bought a bigger place but would be tied to 25 years of fluctuating payments. Only having regular bills to pay is a pleasure.

 

[denislawsbackheel]

The last thing to think of becoming currently is a small time landlord!

 

[chris85mcfc]

Being mortgage free is an absolute relief. I could’ve bought a bigger place but would be tied to 25 years of fluctuating payments. Only having regular bills to pay is a pleasure.

But aren't you just in the same position, you had £20,000 in your pocket, and now you've paid your mortgage off/down, and are probably £700-£800 better off in terms of bills, which probably just dissappears on something trivial.

If you're looking to invest some spare cash, then paying cheap debt off isn't worth it, although it's personal preference.

 

[Manchester33]

Hard to give you better advice without more information. One thing I would say is that an independent FA is relatively pointless if you’re just looking to invest £30k. What you’re trying to achieve is not overly complex and, after considering the costs involved, you’ll probably get a better return on investment by swerving one.

A very generic order of investment is:

1 - pay down any high (6%+) interest debt (credit cards/loans etc).

2 - Save an emergency fund (3 to 6 months worth of spending in an accessible low risk savings account).

3 - invest into a SIPP

4 - invest into a S&S ISA

5 - pay down any other debts (e.g. Mortgage) or invest into S&S outside your ISA wrapper

6 - coke and hookers

If you’re looking for a particular fund/investment vehicle. You can’t really go wrong with Vanguard. Their LifeStrategy funds are very simple to understand and you can select the appropriate fund to suit your risk tolerance (higher % of equities = more risky / higher % of bonds = less risky).

 

[Manchester33]

Being mortgage free is an absolute relief. I could’ve bought a bigger place but would be tied to 25 years of fluctuating payments. Only having regular bills to pay is a pleasure.

Mathematically, paying down your mortgage (vs investing into an index fund and taking advantage of compound interest) is usually a bad ‘investment’. (This is very oversimplified but) The stock market grows on average 7% per year, so if your interest rate is below that = better to invest the money instead.

Having said that, peace of mind is worth a lot of money! Congrats on being mortgage free.

 

[dooie68]

I'm in a very similar position to Tiny, with an option to invest a similar amount of cash, however come Friday I'll be mortgage free and personally can't wait, it's been a long time coming. However with the savings in mortgage that's going straight into investment and see what it'll grow to over the next five years.fingers crossed