Lump sum investment??

evthomson

I have £25,000 to invest and would be grateful for advice on the best way to do this. I have no particular need to access the money in the near future. Due to retire in 8yrs and have £75,000 mortage on a property worth £150,000 mortgage has 14 years let to run. Also have a buy to let property with £40k equity. Am I better to invest the equity & £25K as a lump sum or individually or would I be better to transfer the full amount of monies available to one of those off set mortgages?

Any advice or suggestions would be much appreciated.

EdInvestor

What interest rates are you paying on the mortgages?

evthomson

It's quite high 6.5% problem is I am a foster carer and although my earnings are relatively high not all of the income I receive was classed as allowable which obviously narrowed my choice of lender.

EdInvestor

Perhaps you should use some of your money to reduce the mortgage? A 6.5% guaranteed post tax return is not bad. Doing it by moving to an offset arrangement does give you the flexibility of accessing the money later if you should need it which may be better than just reducing the mortgage directly.