Do I pay off Interest only mortgage?

dollyg_2

I will shortly be in a position to pay off my mortgage.It is approx £35000.The normal maturity date is Jan 2012. Do I pay off or invest that cash?

happylife

good question, but the question you should be asking is can I get a better rate for my money elsewhere..

You probably can but may have some risk associated.

for example I chose not to pay off my mortgage but buy a self select ISA and whilst the stock market is low chose to invest in some Blue Chip companies.

It's a risk on my capital but some companies give me 7%-8% dividend Yield which is more than paying my mortage would.

It's all about

1. Can you get a better rate elsewhere ?

2. Do you like to feel comfortable knowing your Mortgage is paid ?

3. Have any of your More expensive debts been paid off first?

4. Do you have an Rainy Day Fund should the worst happen ?

5. Am I prepared to take some Risks(if no) then put in a bank or pay it off..

A Mortgage really is the last thing you should be looking to pay off. But if you have enough cash to do it then it's one of the best things to do..

dollyg_2

Thank you ,you have given me several points to consider