Overpay or Invest ????

Hello - 1st ever post so here goes !!!!

Our mortgage is £185000 :eek: , made up of £154500 repayment and £30,500 endowment. The term left is 22.3 years. We have just recently remortgaged and are on a tracker rate and are able to make overpayments of no more than £500 per month.
We have just come into a little money :beer: and are wondering if we should use it to make overpayments or invest it. We have around £25000 to play with :j . We currently maximise our isa allowances through our n ormal day to day life. Ive tried looking at the mortgage calculators but am a little confused as they dont give you the option of overpayments for 1 year only - also i'm not sure about the effect that inflation would have.

Please excuse my use of smilies but its my first post and its new to me .

I look forward to hearing any responses - many thanks in anticipation

Replies

  • dimbo61dimbo61 Forumite
    12.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    contact your lender and ask can you pay off the £25k if that is what you
    want to do with the whole amount.
    as you already fill your ISA,s each year ( and therefore have an emergency fund ) you will struggle to get a rate after tax that will equal your mortgage rate. still there are several regular saver accounts paying 7 & 8 % before tax
    put in wife,s name if she is lower rate tax payer !! GOOD LUCK
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