Pay £50k off £72k mortgage?

HeWhoDares

Should I stay or should I blow?

(Values are rounded, so forgive me if they're not 100% accurate.)
We have a mortgage of £72k and pay £150 interest each month (2% above base rate).
Our ISA has £49k value. It tracks the FTSE which we know is at a record high. We put £130 per month into this.

The question is: Do I cash in, pay the mortgage and pay reduced interest rates, or keep the shares and continue until they are worth £72k?

I appreciate the risk element that stocks can go down as well as up, but wondered if there was an MSE 'Rule of Thumb' I could go by?

Thrugelmir

Alternatively. No longer pay into the ISA but overpay the mortgage by £130. While leaving your investments untouched.

As you say markets are at highs. Whether there's enough good news at the moment to push them significantly higher is another matter. Many fund managers appear to be waiting for a fall. As cash holdings are growing.

HeWhoDares

Thanks - an interesting alternative. De-risks me from the likely fall a little.

Thrugelmir

HeWhoDares wrote: »

Thanks - an interesting alternative. De-risks me from the likely fall a little.

Nor will you incur charges from cashing in.