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Pay off mortgage or invest ?
Comments
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Considering I could probably fix a mortgage for 3 years at around 2%, would it make sense to invest the money rather than use it to pay off a chunk of the mortgage.
You may want to be clear on that. The title of the forum gives a clue, saving in cash is not the same as investing and they are different. Investments will vary in value whether it's a BTL house, bonds, shares or funds.Invest: to put money, effort, time, etc. into something to make a profit or get an advantage
I am pretty risk averse when it comes to my hard earned cash, so not looking to invest in anything with the risk of losing money.
If your question really was, do I pay off my mortgage or keep the money in a savings account then that is much easier to work out as you just need to compare the two rates. If the mortgage allows the flexibility to withdraw any money you may need then that may well be the best option.Remember the saying: if it looks too good to be true it almost certainly is.0 -
So this is what I have come up with. Can anyone see any flaws in my plans?
Don't understand why the image isn't showing up. It works if you right click on it and open in a new tab0 -
Does ur 2 year fix planned mortgage have fees attached ?The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
No the mortgage when we do fix would be fee free at around that rate.0
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What is your current above the base rate ?The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
Currently on a Santander tracker 1.99% above base rate.0
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So it is very similar to 2%. You would be about £700/800 a year better of if you keep your money in accounts compared to overpaying the mortgage. Something to think about - are you going to have any surplus income now and where would you put that money if all high interest accounts are maximised.The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
We will have a monthly surplus anything from 500 to 1000 a month depending on circumstances. I can always open more accounts as not maxed out on them with this senario.
I am also thinking of doing a bit of a stooze. We should have a surplus of about 80k once we have sold the first property but quite a chunk is earmarked for a wedding, a van for a new business, new furnishings and maybe a new kitchen. However if I made all the purchases I could on 0% credit cards that would leave the 80k pot pretty intact with more to put into high interest accounts. Something to think about. Cheers0
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