Advice on whether to pay off mortgage

AnotherJoe

ACG wrote: »

Is the interest on the isa higher (after any taxes due) than that of the mortgage?

There is no "interest" on the ISA, the growth is down to growrth in shares. And there are no taxes due as it's an ISA.

OP this is a question you could actually have asked yourself at at time as the amount grew. You could have cashed in when it was 10% 20% or 90%.theres nothing especially sacrosanct about 100%, it's just the psychology of it.

So you could pay it all off and start investing again. Or you could pay an amount off. Maybe 50% maybe 90% amd carry on with the rest.

Or, something else you could do is set a "stop loss". For example you might decide to sell it all should it drop below some arbitrary figure, perhaps 90% of where it is now. Keep it going until (if) that point is reached.if it never dips below 90%, then that likely means it's growing a lot, and you can sell up at some later time having gained a lot more because you are getting growth ona much bigger amount.

This is called gearing. Instead of future growth being just on the new smaller amount left after you'd paid off the mortgage, it's on the whole amount.

As I say that's one approach. The other is, to hell with it, you're done with that debt, if you owned your whole house now you'd never remortgageit and invest in the stock market with the money, so not selling the ISA now and paying the mortgage off would be effectively doing that, and you don't wish to gamble with your house,. And then if you do carry on investing after paying off the mortgage , future stock market losses or gains don't affect the roof over your head.

Only you know which works best for you psychologically as much as financially.

tirosh

AnotherJoe wrote: »

There is no "interest" on the ISA, the growth is down to growrth in shares. And there are no taxes due as it's an ISA.

OP this is a question you could have asked yourself at at time as the amount grew. You could have cashed in when it was 10% 20% or 90%.thees nothing especially sacrosanct about 100%, it's just the psychology of it.

So you could pay it off and start investing again. Or, something you could do is set a "stop loss". For example you might decide to sell it all should it drop below some arbitrary figure, perhaps 90% of where it is now. Keep it going until (if) that point is reached.if it never dips below 90%, then that likely means it's growing a lot, and you can sell up at some later time.

The benefit of that is, should it continue to rise then you are benefiting from gearing. Instead of future growth being just on the new smaller amount left after you'd paid off the mortgage, it's on the whole amount.

As I say that's one approach. The other is, to hell with it, you're done with that debt, you don't wish to gamble with your house any more, and future stock market losses or gains don't affect the roof over your head.

Only you know which works best for you.

Thank you for these excellent points AnotherJo, exactly what I was after.