£30k burning a hole

alex.steve

currently apply £33k against our great Coop mortgage (1.09% lifetime) which is at £216k o/s (including £44k interest only). got a fair bit of equity.

Question - cash feels king at the moment. do i leave against mortgage - no tax, slowly shortening mortgage (downside of good mortgage rate is litte impact) or invest/ISA up? after tax - are we talking a few quid here and there locking away?

or should we be bold?

JohnRo

cash feels king at the moment.

How so? Inflation is rendering pretty much every savings account as a loss making venture in the current climate. Real Inflation is running at about double what the Government want us to believe over an extended time frame.

I'd be much happier holding serviceable low interest cash debts in this climate and diverting any surplus cash into other assets rather than paying down debt or holding taxed at source monopoly money. Not withstanding the usual emergency cash fund and monthly float requirements of course.

jimjames

alex.steve wrote: »

or should we be bold?

If your mortgage is repayment and will be paid off at the due date then I would be bold. I have paid extra into mortgage but am now putting that money into S&S ISA this year.

atush

Quote:
cash feels king at the moment.

Who does it feel king to? Those who don't have any? Those to afraid to have invested and maed money this last 6 months+?


Certainly Not to those who have any as we are making nothing in a savings acct?

Any

As pointed out - cash is definitely not king. Definitely not at this time.
I would be bold too.
Not saying take it all and invest it in one venture, but perhaps start small and build a diversified portfolio of investments with lets say 1/3 of it and then when you get more confident use another 1/3 etc..

As you say - given such a good rate on mortgage, offseting has little impact. So if you can afford it - be bold.