Is this a good idea?

dobs

Hi all hope this is in the right section, its just that hubby and i have a £30,000 mortgage it is tied in for three yrs he says but we can pay 10% off it a year. Last year we managed to pay £3,000 off from using his share dividends that hes been putting away. He wants to do this again this year but we both want to get the mortgage paid off early if we can (we have about 15 more years on it). I reckon we should cash in the shares we have and pay it all off but he says its better to keep them in case they are needed for the future - plus we'd lose quite a bit of it to the government for cashing them in. Just wondereing what you guys think is the best thing to do? We get about £2,000 a yr in dividends and there is a rumour that as they have bought the american yellow bus company the dividends will shoot up next year - i just worry that one day these shares may all be worth nothing and we will look back and wish we'd cashed them in!
Hope my rambling makes sense and any ideas/opinions appreciated thanks!

PasturesNew

I know nothing of shares, or markets. I don't know what house prices/mortgages/savings are going to do either.

But your choice sounds to me like choosing between putting your money all on red or all on black.

I'd say leave the shares where they are, just in case. You've got a dinky mortgage, you're managing to pay it off early steadily.

I know nothing except people advise that your "investments" are spread across different types of holdings. And at the moment yours are invested in your home, liquid savings, shares. So I'd leave it as is.

17Dave

Just did a quick calculation.

If you pay an extra £3,000 per year you will reduce the term to 6 years and save around £10,000 in interest payments.

As you are restricted to 10% per year at the moment it won't be quite as good but not far off. Keep going.

dobs

thanks 17Dave!!