Pay Off Mortgage or Invest or Something?

magic79

Hey y'all,

Sorry if this question is in the wrong section, please let me know if I need to move it.

So i've been working on this well paying contract in the Middle East for the last couple of years, just saving away, and now i have some decent savings (almost 92k). It's just sitting in the bank at the moment so realised it really should be put to better use somehow...

My question to the forum is, should i just use it pay off my mortgage (63k remaining over 22 years) or so use it invest elsewhere? I quite like the idea of getting a BTL property, then there's bonds and shares etc, but i don't really know a lot about that. Oh and i currently do not have a pension place in place.

Should i go see a financial advisor? Is my situation relevant for that kind of thing?

Any advice is welcome, as i'm pretty clueless. Thank you!

ColdIron

magic79 wrote: »

Oh and i currently do not have a pension place in place.

Put that at the top of your list

Peelerfart

Married, dependants, working if not, prospects of starting any time soon? Are you returning to the middle East?

magic79

ColdIron wrote: »

Put that at the top of your list

Okay, i'll look into it. Been meaning to do that to be fair. Won't require me using up my saving though? Or does it? Actually i'll look into it first so i know whats what.

atush

So i've been working on this well paying contract in the Middle East for the last couple of years, just saving away, and now i have some decent savings (almost 92k). It's just sitting in the bank at the moment so realised it really should be put to better use somehow...

in general, not having the answers to above questions- you have in someways already missed the boat.

In either investing (would be my choice) or paying of mtg (all dependent on the mtg rate you are paying and any rental income received.

do let us know the details

magic79

Peelerfart wrote: »

Married, dependants, working if not, prospects of starting any time soon? Are you returning to the middle East?

Single, no kids, no debts (aside from the mortgage), working abroad has made it hard to settle down but that's another story lol.
Yep, i'm still working in the M.E. on a rotational basis, for time-off i'm back in the UK. I'll be doing this job at least until May next year when my contract is complete. Between May and now I should be able to save another 45k, rough estimate. Which could be put it something too; i'm going to look into pensions and see how much is worthwhile putting in.

magic79

atush wrote: »

In either investing (would be my choice) or paying of mtg (all dependent on the mtg rate you are paying and any rental income received.

do let us know the details

What would you invest in?

Well based on my current mortgage, for 22 years, its £15k worth of interest. To pay it off early, like today, the fee is £2700. Gotta wait 4 more years until it's fee free.

kidmugsy

Pensions are devices for avoiding or deferring tax. Are you liable for UK income tax at the moment? If not, you might want to look at other ways of saving for retirement.

magic79

kidmugsy wrote: »

Pensions are devices for avoiding or deferring tax. Are you liable for UK income tax at the moment? If not, you might want to look at other ways of saving for retirement.

No i do not currently pay income tax, i'm out of the country too much.
What other ways of saving for retirement are you referring to please?

jimjames

magic79 wrote: »

What would you invest in?

Well based on my current mortgage, for 22 years, its £15k worth of interest. To pay it off early, like today, the fee is £2700. Gotta wait 4 more years until it's fee free.

Definitely wouldn't pay it off if you're getting hit with fees.

magic79

jimjames wrote: »

Definitely wouldn't pay it off if you're getting hit with fees.

At first i thought the fees would be a waste, but i think the fee is equivalent to the amount of interest that is going accumulate between now and the end of the my 5 year fixed term. So either way i'm paying it, if i understand it right.