Is mortgage overpayment the best use of our money?

MM10

I thought this was an interesting post. So I am just bumping it back to hear other takes on it. I have just cashed in on some shares. About £7000 (it made about 10% return). It was part of my emergency fund but saw a good short term investment and that paid off. So was wondering the wisdom of having this HUGE chunk sitting in a 1.75% saving account and taking up short term opportunities as they come vs using part to overpay mortgage(3.5%).

gavted

prepperpig wrote: »

I know absolutely nothing about investing and TBH it scares me to death thinking about putting my money into something I don't understand. Lots to think about there! I'd only managed to get as far as "I have a large debt and I don't like that" We've not even ventured into stocks and shares isas…...

Pepperpig, I think your statement above really answers your question for you. You don't like having the debt, and are "scared" or cautious about investing in things YOU think you don't understand.

Based on that mindset, whilst the "clever" money may say keep the savings, you may sleep easier at night if you get rid of the mortgage. It is best however to keep an emergency fund just in case.

I think JimmyTheWig made a good suggestion of keeping the savings until they match the mortgage. I did this with my first mortgage, and although you drop to £0 savings (:(), you then are in a position to build them up again very quickly :j

Thrugelmir

With a mortgage debt of £278k. I would be adverse to speculating too much. Life is a roller coaster. One never knows what is around the corner. Job, relationship, health etc. Once a mortgage is cleared it gives security and as a consequence peace of mind. Something money simply cannot buy.

Not suggesting you clear it entirely. Just reducing it to a more comfortable level.

Is your mortgage on a variable rate?