Save or pay off mortgage.

tinkertusker

I currenly have a mortgage of £30k and make repayments of £240 a month and have 14 years remaining.I have £300 spare every month.Would it be
Beter to use this money to pay my mortgage,or put into a regular saver now papaying 10% AER.Then use this money to pay off a chunk of my mortgage on renewal.Overpayments of £500 can be made a month.

tomstickland

If the interest is calculated monthly and the overpayment counts monthly then overpay the mortgage.

Actually, take that back, I've just done a spreadsheet and it says that you'll be better off using the reg saver.
So put £250 per month into reg saver and the rest do something else with.

Conrad

I keep my mortgage high such that I may invest in order to build wealth.

This allows me to put money in several unit trusts (which have gone up 60% in 24 months) and invest in land in Berlin, a Villa in the most amazing prestigious resort in / around Europe (its in Saidia Morocco to be finished 2009) and have bought a UK commercial property and own my own business.

I am mindful I need to start paying down the mortgage, but will only do this once ive built my portfolio. The villa alone for example will let for c£3000 per week and the season is 12 months, but if I repay mortgage first the villa would have at least trebled in price by then.
Always better to focus on wealth building and preferably get all assets by age 45, then rapidly clear the mortgage.

Why? I know many people who put all energy into paying off mortgage and tinkering with unimaginitive sabvings plans / pensions who then as they reach thier 50s / 60s realise they are income poor as a result of not have spent time focused on asset building.

Prudent

That sound great Conrad - but surely that is more for the experinced investor. I paid of my mortgage because like my user name I am prudent and cautious. there is someone inside me who would love to be like you - however I have no knowledge of investing.