Mortgage Repayment Options

LowerO

With a couple of endowment policies maturing shortly to pay off the interest only element of my mortgage, I will be left with approx £55K to cover ideally over a maximum of 10 years. The safe bet is to continue with a repayment mortgage, but I am tempted to take an interest-only and look at an alternative repayment vehicle for the £55K capital.

I am 48, married, high rate tax payer. I estimate that I could have up to £600 per month available to invest (based on the likely interest-only mortgage cost against the current cost of mortgage and endowments). So I've been looking at the boards to see what options there are - S&S ISAs are mentioned a lot.

It may be prudent to do some of the £55K via repayment to reduce my risks, although I contribute to a company pension and company share scheme. I also pay £43 per month into a private pension scheme (taken out before my current employer's arrangement) so wondered if that might be an option for the investment?

Would welcome some ideas (I've also posted in the investments forum in case this is not the right place).

Thanks

LowerO

I've done some more calculations and I think that I will end up with £35K continuing on repayment and £20K on EITHER repayment or interest only.

So it is potentially 'only' £20K that I'm looking to cover with an investment.

I like the idea of finding a tax efficient vehicle, so I will investigate the pension opportunity.

Would really value some input...

TrickyDicky101

A repayment mortgage is a tax efficient vehicle! Compound interest returns from paying off the capital are exempt from tax.

Why would you want to take the risk?