We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Invest or pay lump off mortgage?

slaney
slaney Posts: 18 Forumite
Part of the Furniture 10 Posts Photogenic Combo Breaker
edited 3 May 2017 at 3:45PM in Mortgages & endowments
I have an opportunity to reduce my mortgage without penalty. The mortgage interest rate is 1.69% fixed for 24 months. Alternatively I could invest that money (but not in something like equities that could lose money). I am higher rate tax payer but my wife pays no tax.

If you had say £50k would you invest it or pay off a lump of your mortgage?

Just looking for some opinions....

Comments

  • swindiff
    swindiff Posts: 978 Forumite
    Tenth Anniversary 500 Posts Name Dropper Newshound!
    Do you have a works pension, if it were me I would start making the maximum over-payments to that allowable. That immediately saves you 40% income tax.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.5K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.5K Work, Benefits & Business
  • 601.4K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.