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!
Mortgage or use investments
mrclean
Posts: 16 Forumite
Hello
I am purchasing a house for £260k following splitting with partner. He is buying me out of the house so the majority of the cost will come from that. My question is I have stocks and shares ISA which I could use some of it to pay the balance (about £50k) and still have savings left. The ISA is currently paying about 10% interest.I like the idea of not having a mortgage but wonder whether financially it would make sense to get one. I am 53 so would want a short term (say 7 years) and looking at a 5 year fix- which currently there is 1.17% APRC 3.5% . Can anyone advise please?
I am purchasing a house for £260k following splitting with partner. He is buying me out of the house so the majority of the cost will come from that. My question is I have stocks and shares ISA which I could use some of it to pay the balance (about £50k) and still have savings left. The ISA is currently paying about 10% interest.I like the idea of not having a mortgage but wonder whether financially it would make sense to get one. I am 53 so would want a short term (say 7 years) and looking at a 5 year fix- which currently there is 1.17% APRC 3.5% . Can anyone advise please?
0
Comments
-
-
Thrugelmir wrote: »Are you sure?
I think so it says Annualised return (Incl. historic investments & cash) 10.94%0 -
It depends on your attitude to risk.
Your S&S ISA has given you a return (not interest) of 10% annually but as the small print says this is not guaranteed and you could possibly even experience loss of capital.
On the other hand paying off your mortgage is a "guaranteed return" with no risk whatsoever.
In your place I would keep the ISA and take out a small mortgage for the balance but that might not be the right choice for everyone.
I hope that makes sense0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards