Advice.... Please Overpayments or Shares

LULULU1

I have a 15 year offset tracker mortgage at base rate plus 1.89%. My property is worth apporx 200k and my mortgage is 75k.

I am currently able to pay £1000 per month off my mortgage and also the interest (approx £150).

My question is am I better continuing to pay off my mortgage quickly or putting this £1000 into share some of which seem very cheap at the moment.

Many thanks for any advice.

snarffie

LULULU1 wrote: »

I have a 15 year offset tracker mortgage at base rate plus 1.89%. My property is worth apporx 200k and my mortgage is 75k.

I am currently able to pay £1000 per month off my mortgage and also the interest (approx £150).

My question is am I better continuing to pay off my mortgage quickly or putting this £1000 into share some of which seem very cheap at the moment.

Many thanks for any advice.

We have decided to do a little of both. We have about half in cash isas/banks with high rates and the other half in shares. We have about half the shares in trackers (Uk,US and a managed China fund) and the others in a single company (v. high risk). Shares are currently showing about 50% increase and cash is on average of about 3.5% interest.

Unfortunately, shares are hugely unreliable in the short term as, despite our current good position, about a month ago, they were at about -10%.

My only suggestion is to be careful about putting all your eggs in one basket. Many shares are cheap at the moment, but the difficulty is identifying them! A few trackers may be a simple way of getting some low/medium risk investments going, and putting them in an isa would avoid the need to worry about tax in future.

snarff.