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!
Pay off or not
alunp
Posts: 105 Forumite
In terms of getting out of debt, if you had a windfall would you pay off the mortgage or invest it.
It seems that paying off the mortgage looks a no brainer but then your money is locked forever and can only be unlocked again by taking out a loan.
In which case, isn't it worth investing it and accepting that you're incurring a cost but have the benefit of actually getting hold of the money.
What do people think on that one?
It seems that paying off the mortgage looks a no brainer but then your money is locked forever and can only be unlocked again by taking out a loan.
In which case, isn't it worth investing it and accepting that you're incurring a cost but have the benefit of actually getting hold of the money.
What do people think on that one?
0
Comments
-
Personally I would pay off the mortgage in full or at least a large part of it. The money I saved paying into the mortgage each month I could then save / invest.2022 wins include.... £1,000 cheque £150 ASDA gift card £250 Impericon gift voucher £100 cheque £100 of plant bulbs £100 Bower Collective voucher0
-
By paying off the mortgage, you'd save a fortune in interest over the term of the mortgage, as well as increasing your spending power (you'd no longer have a mortgage payment). This extra money every month could then be saved, in a more liquid form. It wouldn't take long to build up a nice amount... whereas I would be afraid my windfall would be dribbling away over a couple of years, with nothing much to show for it, and I would then still have a mortgage to get rid of (with ever-increasing reapayments, probably)I'm an adult and I can eat whatever I want whenever I want and I wish someone would take this power from me.
-Mike Primavera.0 -
Id pay off at least half of mine~ oh joy~ & invest the rest.
What an amazing thought~I wish!!I am a Forum Ambassador and I support the Forum Team on Mortgage Free Wannabe & Local Money Saving Scotland & Disability Money Matters. If you need any help on those boards, do let me know.Please note that Ambassadors are not moderators. Any post you spot in breach of the Forum Rules should be reported via the report button , or by emailing forumteam@moneysavingexpert.com. All views are my own & not the official line of Money Saving Expert.
Lou~ Debt free Wanabe No 55 DF 03/14.**Credit card debt free 30/06/10~** MFW. Finally mortgage free O2/ 2021****
"A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
***Fall down seven times,stand up eight*** ~~Japanese proverb. ***Keep plodding*** Out of debt, out of danger. ***Be the difference.***
One debt remaining. Home improvement loan.0 -
Pay off the mortgage...definately...maybe a little holiday too!0
-
If you pay off the mortgage you will have financial freedom and save yourself the amount if mortgage payment each month, I wish I was that lucky!Debt free and plan on staying that way!!!!0
-
Pay off all but about £5k-£10k of the mortgage, it helps your credit rating to have one.
Keep that amount in savings to offset against it so you don't pay interest.No longer using this account for new posts from 20130 -
I'd pay off the mortgage as ordinary savings accounts pay less than what you pay out in mortgage interest.
It is possible to achieve a higher return (higher than mortgage interest that is) with investments but risky, esp if you are new to that kind of thing.
Plenty of brokers out there who will do it for you and skim off a fat fee.
To keep life simple I would pay off mortgage (heaven!!) and save up the payments each month. In a few years you will have a nice nest egg!
You could pop over to the investment board and see what they say....:D0 -
:wave: HI
id personally pay off the morgage mate
but as some of the others suggest pay off majority and treat your self to a holiday or new car:TSealed pot challenger # 10
1v100 £15/3000 -
My head would say get some proper financial advice about how to make the money work the hardest for you. I'm sure I remember reading an article on Motley Fool about why he was never going to pay off his mortgage, something along the lines of it being cheap debt.
My heart on the other hand would say pay off the mortgage.1st April 2008 challenge:mad: xmas overspend = [strike]£254.05[/strike] £0:j......cc1 = [strike]£240.78[/strike] £0:j .......cc2 = [strike]£667.47[/strike] £0 :j ...amount owed to ISA = [strike]£1599.90[/strike] £0:jTOTAL TO GO = [strike]£2762.20[/strike] £0 !!!:dance: DONE IT DONE IT DONE IT!!!:dance:0 -
Pay the mortgage - now is not a good time to be investing if its tied into the stock market.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards