Overpay my mortage or invest the money??

stug15

From the sale of a property, I now have £10k spare. My current mortgage is £125k and the mortgage payments are roughly £700 a month. I'd like to reduce these payments but re-mortgaging is not an option for another 18 months due to being tied in to it.

Is it better to overpay my monthly mortgage payments or invest the money until I can re-mortgage?

dunstonh

Investing should only be considered where the term is 5 years or more (or you are higher risk in nature) and you are aware of the investment risk that means that the investment may not grow above the amount you pay in interest on the mortgage.

If you accept that, then investing is fine. If you dont, then paying off the mortgage is more sensible. If it is that short term, then saving it would be better than investing it. Paying it off the mortgage is a viable option but having the funds available in your account may be more valuable depending on your circumstances.