Should I overpay mortgage or save in stocks and shares ISA?

steampowered

london21 said:

Depends on your risk appetite.
The safe option will be to overpay on your mortgage.
interest rates are very low at present, investment likely yield higher returns but investment can increase or decrease in value.  
Funds are a good place to start but do your research and due diligence. 

Disagree, it depends on your investment horizon.

The risk of stocks & shares decreases the longer you hold your investment. Your risk of making a capital loss on a 20 year stock market tracker investment is 0%. 

Conversely, the risk of losing capital on cash in savings accounts or in premium bonds increases the longer you hold them. Holding investments in cash or premium bonds for >10 years is risky because you are losing value due to inflation. If inflation was to average 4% over the next 10 years, inflation would drop the capital value of the premium bonds by 49% over that time frame. 

It is impossible to avoid risk. You can only understand it and plan as best you can based on the data in front of you and your personal circumstances.

london21

steampowered said:

london21 said:

Depends on your risk appetite.
The safe option will be to overpay on your mortgage.
interest rates are very low at present, investment likely yield higher returns but investment can increase or decrease in value.  
Funds are a good place to start but do your research and due diligence. 

Disagree, it depends on your investment horizon.

The risk of stocks & shares decreases the longer you hold your investment. Your risk of making a capital loss on a 20 year stock market tracker investment is 0%. 

Conversely, the risk of losing capital on cash in savings accounts or in premium bonds increases the longer you hold them. Holding investments in cash or premium bonds for >10 years is risky because you are losing value due to inflation. If inflation was to average 4% over the next 10 years, inflation would drop the capital value of the premium bonds by 49% over that time frame. 

It is impossible to avoid risk. You can only understand it and plan as best you can based on the data in front of you and your personal circumstances.

Good point but £450,000 mortgage is a large amount and interest rates wont be so low forever.

Good points made, funds safer option, I previously had bad experience with shares investment due to lack of diversification but now know better and doing better.

With funds also depends on age for example, a 30 years old comparison to a 65 years old person, depending on length of time, circumstances etc.