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Mortgage or use investments
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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?
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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
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