ascoile
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Clear the motgage.
Your second idea is a no brainer because you would be paying more in interest for the mortgage than you would be getting back in interest.
Or to put it another way you would be giving the bank £80,000 odd which they are effectively lending back to you at a higher rate of interest than they are paying you in interest. |
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Eddy T
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No.2 is the better option. |
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John D
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Keep it simple. Pay the mortgage off |
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toecee
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Mortgages are still the cheapest way to borrow money and those penalties for early payments would be an issue. Maybe paying off part of your mortgage would be a way to go. Speak to your mortgage people and they may offer you a deal. Either way, it's always best to spread your investments. It's a pity all this didn't happen to you 12 months ago when the market was better! |
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Try n Smile
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Firstly sorry to hear about the sad death in your family. My advice with the money they have so greatfully left you is put in in a high interest account. A lot of mortgages you can pay off 10% each year without any penalty even on a fixed mortgage but this is something you will have to discuss with your lender. Although thats my recommendation the best thing to do is talk to your mortgage lender and see what they advise. |
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Elliot Ness
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Ride out the fixed tracker, you can put the money in like an ING savings account and pull 5.5% interest. If you want to look to bigger gains, look to the market, it is a bit volitile right now, but it is a good way to pull down cash. Talk to a good broker though, and I would only go with 10k until satisfied with his performance, and if it good, then you may not nesessarily need to put more cash in as he will be building on your original principle. Another thing you could look into is due to the housing slow down alot of people are trying to sell up and because it is a bit of a buyers market, you could probably find some good deals on flats. Renters are still everywhere. Or if you don't mind feeding on anothers misery, you could always look into repo's as you can usually pick up on of those for well less than market value. It's always better to use the banks money, and keep yours in your pocket. |
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phil g
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The question is simply can you get a better return on an investment than the rate you pay on you mortgage. And thus this all depends on what interest rates will do. It is my view interest rates will decrease in the near future but are likely to increase past the current levels by 2010 (future interest rates can be anticipated by looking at the price of gilts). This means you need to find an investment with about 8% annual return after tax. Go speak to an IFA they will be able to help you. |
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leambi
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You might as well invest/save the money until you come out of the early repayment charge period then pay off your mortgage and save/invest the money you would have used each month. |
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atheism_and_rats
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I would just pay it off. Peace of mind. |
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Say what!!!!
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Clear the mortgage and whatever money is left over, just go on a very needed vacation. |
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Lee H
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After the tax that's due, if you can clear it or significantly reduce it, then go for it... it will enable you to virtually do what you want... the major expense of each and every month will be gone, it will add leverage to your life that you have never had before. You don't have to pay it all off, but don't fritter it either... go that little bit further, you'll get more out of it in the long run. |
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sally t
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We cleared our mortgage 25 years ago whilst in our 40's
Best thing we have ever done
We have been able to travel extensively, help the children get onto the property ladder and build up decent savings for a comfortable retirement.
Why give the banks and building societies all that interest
Had save as you earn accounts, Tessas and ISA's have managed to build up sizeable accounts all tax free, so good idea better than paying pension providers fees.
Whilst the money is in your account you have control over your money |
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ANF
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Pay it off NOW. The penalties are probably less than a full year in payments. Then continue to save your existing payments into a monthly savings account by direct debit and each year transfer and save the maximum, currently £3600 per year, into and ISA. If you are married then you can each open an ISA for the full amount every year. There are some very good high interest accounts about now but split your savings between 2 different banks as the maximum payout per bank by the government in the event of a bank going down is £35000. |
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deewani_2005
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Even if you dont pay off the mortgage, you will still accrue interest of a few thousand pounds, check the figures on how much you will be charged in early repayment fees and if its not too much repay the mortgage otherwise invest the money and then do it |
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Arya A
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Clear your mortgage.
1) It's principal.
2) You'll feel really good about it. |
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Michael D
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You are in a great position, minus the death.
Use the £90,000 to start a property portfolio, while the market is down. It is due to start picking up again in about 6 - 9 months time. In the meantime rental yields are great and you could buy 2 or 3 properties with that deposit.
Go for it you may never get as good an oppotunity again. |
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Chris_H
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well, it depends on your house, and where it is located. If your house is worth it and if it is in a desireable area, which is likely to go up in price after this credit crunch that we are having, then i suggest that you do clear your mortgage.
If however, you dont think it is the right time to clear your mortgage, then i would invest it into something worth it that you know you will make a profit from, then clear the mortgage. |
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Oliver B
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yh |
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Senor Solo
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See an Independant Financial Advisor. You should get this advice for free. |
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RICHARD X
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Invest the money for 2 years and then pay your mortgage. |
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babbers47
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no 2 |
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Sara
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maby if you want to |
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