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Hypothetical remortgage investment question
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Sn0tters
Posts: 19 Forumite
Hi,
I've been searching around for the answer to this question but got nowhere so I'd like opinions or redirections to answers.
In our house we would remortgage quite regularly with an independant mortgage advisor. It occured to me, is there any reason why it would not make sense to add x thousand to the mortage at 4.5 to 5% and invest that money elsewhere?
According to Tim_L in this post http://forums.moneysavingexpert.com/showthread.html?p=2905385 going to an IFA will net you 7% on an investment, so it would seem I have been missing out on 2% interest for nothing.
If this is the case why isn't everyone doing it?
I've been searching around for the answer to this question but got nowhere so I'd like opinions or redirections to answers.
In our house we would remortgage quite regularly with an independant mortgage advisor. It occured to me, is there any reason why it would not make sense to add x thousand to the mortage at 4.5 to 5% and invest that money elsewhere?
According to Tim_L in this post http://forums.moneysavingexpert.com/showthread.html?p=2905385 going to an IFA will net you 7% on an investment, so it would seem I have been missing out on 2% interest for nothing.
If this is the case why isn't everyone doing it?
0
Comments
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If this is the case why isn't everyone doing it?
Risk of the returns being below the mortgage rate
Risk that capital invested will fall in value
taxation0- effects on returns
nice feeling that borrowing is low
now there maybe some products that have a "risk free" return of above the mortgage rate ( some people might get this a decent cash isa, if on a low rate mortgageAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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