Now I'm debt free, overpay mortgage or invest?

graemecarter

Racky_Roo said:

JJG1984 said:

Racky_Roo said:

It's not been mentioned yet but a lot of mortgages have a cap on what you can overpay so that may limit the choice of what to do with the money. Mine for example is only 10% of the balance every year so on the first working day of the new year I overpay the 10% allowed. I've been saving the rest in a cash ISA and when my fixed rate ends in Oct i'll use the remaining savings to reduce my borrowing then.

I also have a S&S ISA which usually performs at 6% but only put in what i'm prepared to lock away until I retire which is a long way off.

I started a S&S ISA with nutmeg this year and my growth is nothing like 6%; may i ask which provider you are using and your risk level selected. Currently adding £250pm. Fell for the google ad

I'm with St James's Place with medium to high risk investments. I'm early 40's so can afford to take the risk now but will drop to a lower risk the nearer I get to my retirement goal (which is aged 60)

Ditto - while the markets have had a great decade, even if they grow at 3% for the next 20 years, I'll make money if interest rates stay below that. If rates keep creeping up, then I'll change to repayment. 
The closer I get to 65 I'll move more to bonds and out of equities for the money invested. 

If you want certainty, go for repayment and overpay. 

datlex

I would definitely make over payments on the mortgage.  But not the whole amount:

I'd suggest £100 each month mortgage, £150 investments, £250 savings,  £500 personal pension for you.