Pay off or invest?

I owe about £20,000 on a mortgage. And I am due to inherit same amount. Is it better to pay off the mortgage or invest. I'm confused...


  • Susan
    Do you mean invest in the markets? See my thread on the recent situation we've ridden for our ISA Funds.

    What's your risk tolerance? There's no guarantee for investments..

    Do you have pension and emergency funds set aside?

    Consider if you want to invest as a lump sum or pound-cost-average? Here you spread risk but may miss the big uplifts (and drops) in market.

    With no other considerations, I'd clear the mortgage for security and peace of mind (plus removal of any ongoing costs like interest and life cover) then set up ISA Fund and invest each month into that across a range of funds unless you have time for DYOR on individual equities.

    Good luck
  • JonbvnJonbvn Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts

    What is your mortgage interest rate? Are there any charges for making overpayments? What other savings do you have? What provisions for retirement do you have? Do you have savings for emergencies 3-6 months income is the consensus?
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • Surely thats a personal choice, the known security of mortgage free versus known security of money in the bank!
    RosieTiger - Highest £242,000 Feb 2004 :mad:
    Lightbulb Dec 2008 £146,000 by March 2026:eek:
    MFi3T2 and T3 No 28 - Dec 2009 Start Balance £117,000
    Current Position-Fully off set by savings since March 2013
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