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Overpay Mortgage or Use Equity ISA
Options
birdy1010
Posts: 33 Forumite
what is the general considered opinion here on this?
my 25 year mortgage at present is 3.99% for 4 years, but what is best practice for now and after the 4 year period?
my 25 year mortgage at present is 3.99% for 4 years, but what is best practice for now and after the 4 year period?
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Comments
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Personally, i am doing both.
Interest rates are so low that a few days movement on the markets can beat the annual rate on the mortgage potentially. For the long term the investment prices currently look good and the benefits of using the S&S ISA allowance can be useful for later in life.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I take it your current mortgage T & Cs allow overpayment? If so, it is down to personal preference and your own risk profile. Reducing the capital on your mortgage is a guaranteed action. Whilst S & S have been showing a gradual improvement, all the gains can be wiped out in one day's nervous trading. If you can't afford to take a hit, then play safe and pay off some capital.0
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