What am us to do?

HoolyNI

Hello, my wife has applied to take a winding up sum from an old pension, which now puts us in a position to clear our mortgage but am wondering if i should or not with interest rates so low.

Have 17 k in an overpayment reserve which has reduced our mortgage to £150 per month, without the O.R. it would be around £260 .....but if i use all our savings to clear the mortgage they'd be gone for good and would take quite a while to replenish at the £150 a month we'd be saving by having no mortgage.

Anyone any advice? Are ISA's worth investing in at the minute?

happycamel_2

You need to compare the rate on your mortgage with the rate any investment will give you, obviously bearing in mind that unless it's cash based it can go up and down. You might want to consider throwing half at the mortgage and half at a diversity of investments. Then with the money you've saved in mortgage repayments, save half and OP half. But this totally depends on your mortgage rate, attitude to risk and any early repayment charges on your mortgage.