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Lump sum - pay off mortgage or Invest?
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TonyInSussex
Posts: 1 Newbie
Hi,
First post here, but been a visitor to the site for a while. I'm seeking advice about what to do with a lump sum.
I have some interitance coming very shortly. I will be setting aside about £100k to pay off some of our £244k mortgage. But with the interest rate so low, I am wondering if there is somewhere better that I can put the £100k to effectively earn more than I would have saved by taking it off the mortage.
Our mortgage is interest only, variable with St James Place Bank. The current rate is 2.5% which is calculated monthly. We also have an endoment which was set up to pay off £156k (the orginal mortgage amount pre advances!).
Does it make sense to put this lump sum in a higher interest account/s until such time that the mortgage interest rate exceeds the savings (if that makes sense)? We would also like to pay our mortage off early, but I guess that's something to look at further down the line.
I Look forward to your comments,
Tony
First post here, but been a visitor to the site for a while. I'm seeking advice about what to do with a lump sum.
I have some interitance coming very shortly. I will be setting aside about £100k to pay off some of our £244k mortgage. But with the interest rate so low, I am wondering if there is somewhere better that I can put the £100k to effectively earn more than I would have saved by taking it off the mortage.
Our mortgage is interest only, variable with St James Place Bank. The current rate is 2.5% which is calculated monthly. We also have an endoment which was set up to pay off £156k (the orginal mortgage amount pre advances!).
Does it make sense to put this lump sum in a higher interest account/s until such time that the mortgage interest rate exceeds the savings (if that makes sense)? We would also like to pay our mortage off early, but I guess that's something to look at further down the line.
I Look forward to your comments,
Tony
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