Dilemma - Help

doctorski

Hi,
Bear with me its complicated

Split up from the missus, albeit amicable, and I am renting a place.

We have a mortgage c 100k with 14 years left.
Just signed a 5 year fixed at 1.79 and can overpay 10% a year.
Payments are approx 640 and can overpay an extra 850 a month before hitting early redemption charges.
I have about 40k invested in european growth shares, lost 12k in a breath last year, but recovered 4k in last 6 months.

Is it worth me cashing in my 40k and plowing it into the 850 overpayments, so mortgage is paid off in approx 5 years.
Obviously need to get signed in blood our agreements.

Any help / advice would be greatly appreciated

- Doctorski

Sepa74

Hi Doctor,

You need to think about your attitude to risk. Shares, and particularly growth shares, are higher risk than paying off your mortgage or saving in cash.

The wild swings that you see with shares are why they are considered a long term investment. If you are uncomfortable with these wild swings (ie you are risk averse) then cash out.

If you don't mind them, but are willing to hold out for the longer term (and the possibility that you will make more than if you do cash out), then keep the shares.

You may find it helpful to discuss your financial situation with an independent financial advisor. They will assess your attitude to risk, your asset portfolio (cash, shares, property, retirement funding etc) and provide advice to help you maximise your assets in a way which keeps the risk levels comfortable.

Sorry it's not the clear advice you wanted... your question is just too complicated for us to answer.

DVardysShadow

Better than putting the money into the mortgage is putting it into a fixed rate investment which returns better than 1.79% and paying the money off the mortgage at the end of the fixed term.

But whether that is better than taking the money out of the shares requires a crystal ball. And your crystal ball is as good as anyone else's