Offset my mortgage or in vest somewhere else?

watson1959

Hi
I am 51 and will soon see one of my endowments mature. Fortunately the shortfall is miniscule and we will receive a cheque for about £41k (out of the expected £43k).

My current mortgage will need to be paid off in 4 years so my question is: do I put this £41k against the 3.95% Virgin One mortgage now, thus reducing my ongoing interest costs or find a different home offering a better return? I am a higher-rate tax payer.

I'm looking for security rather than risk....all advice appreciated!

Rgds
SW

lisyloo

Pay off the mortgage.
The 3.95% return is guaranteed and tax free.

You could invest the money elsewhere but you'd have to be aware of your CGT allwowance and also charges.
If you want security paying off the mortgage is a no brainer.

getmore4less

Offset the mortgage and look at investing the savings you make.

As a 40% tax payer ISA are usefull, you could fund the Full S&S isa allowance from the savings and then use surplus money from income to rebuild the offset funds.