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Advice please

Our current fixed rate with the Halifax is due to expire 30/9/06. It comprises of part repayment and part interest only (split 40/90). At some stage in the coming months (which will be after this date) I am likely to be made redundant with a pay off between 20-25K.My question is two fold. Firstly, is it always advisable to pay-off your mortgage rather than investing? and secondly would it be better to take out an interest-only mortgage of 130k rather than committing to a repayment/interest-only mortgage again given my impending circumstances?

Any guidance/help would be very gratefully received.
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