Lump Sum Investment

boingy

For me it would be increase pension contributions to get below 40% tax then reduce your mortgage, unless you are on an insanely low fixed rate. In the latter case max out your and your wife's ISAs.

Sg28

jaceyboy said:

badger09 said:

jaceyboy said:

Always pay your mortgage off…

Psychologically - maybe
Financially - not always best 

Financially not best? I would rather own my house and no one can take it from me, also I’m immune to mortgage interest rate rises…

If you are on a fixed mortgage and your rate is lower than current savings rate then its much better not to pay it off. 
For example my mortgage is 2.29% until 2028. I have the money in a fixed term savings account paying 6%. So Im making £200 per month profit by not paying my mortgage off. 

eskbanker

jaceyboy said:

badger09 said:

jaceyboy said:

Always pay your mortgage off…

Psychologically - maybe
Financially - not always best 

Financially not best? I would rather own my house and no one can take it from me, also I’m immune to mortgage interest rate rises…

The first reason being the main psychological one (rather than financial), and the second can often be irrelevant, depending on relative rates, such as in the above post.  The key message being that individual circumstances vary, so it's not as simple as "Always pay your mortgage off"....

jimjames

jaceyboy said:

badger09 said:

jaceyboy said:

Always pay your mortgage off…

Psychologically - maybe
Financially - not always best 

Financially not best? I would rather own my house and no one can take it from me, also I’m immune to mortgage interest rate rises…

If you have £50k in savings paying 5% and £50k outstanding on mortgage at 1% then no-one can take your house from you. If rates rise to 6% you can clear the balance anyway but in the meantime you're making 4% more on the savings than you're paying in interest.

Qyburn

You also have to consider if there are early repayment charges on the mortgage.

L9XSS

Losing my job hardened my resolve to paying my mortgage off early when I rejoined the world of work. I agree not one size fits all, there are pros and cons to both. 

Albermarle

L9XSS said:

Losing my job hardened my resolve to paying my mortgage off early when I rejoined the world of work. I agree not one size fits all, there are pros and cons to both. 

In the regular discussions about mortgage vs pension/investing, a most important point is how secure you think your job is. If there is an element of insecurity then keeping a roof over your head will be the priority,