Invest or Pay off
in Mortgage-free wannabe
3 replies 560 views
We are in the very fortunate position of being able to pay off our £70K mortgage thanks to a retirement commutation. However a financial advisor suggested this may not be the best way of using the money and it should be invested instead as this would show the best return in the long term. The monthly payment is not a problem. His logic was that £70K invested over the remaiining term of the mortgage (which is covered by 2 endowments) would show a better return than paying it off. My thoughts are the return would have to be in excess of 5% per annum and we could still invest the money saved on the repayments whilst we do not need it to boost our income. I don't want to take any investment risks where the value of the commutation could go down. But I would welcome the opinion of others.:j
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