25k to play with!!!!

wuzzbert

Hi, Ive been a good lad and saved up 25K. I have a 46k mortgage fixed at 4.25% till dec 2008. I have a regular job earning 26k a year and an ebay business for my spends!! Im 31, single and bloody happy BUT im wondering what is the best way to channel my money? Pay off mortgage, invest, keep as savings in ISA's / savings account?

Your advise would be great, Im good at saving money but not so good at making it work best for me!! Thanks

dunstonh

im wondering what is the best way to channel my money? Pay off mortgage, invest, keep as savings in ISA's / savings account?

The problem is that all those options are valid options and any (or a combination) could be the best way depending on your circumstances. Also, dont forget your retirement provision.

So, its impossible to say what is best for you based on what you have written so far.

spalding

what sort of risk are you willing to take what sort of goals do you want to achieve?

wuzzbert

I have a decent (as of today!!!) pension with the large company I work for

liitleblackcat

You are paying 20% tax so only pay off your mortgage if you are earning less than 5.31% on any savings. If you are, then you need to move your savings somewhere else. Take out a cash ISA first for £3.6k (Barclays or B'ham Midshires - but see other posts about issues) and then move the rest into a high interest savings account (Kaupthing Edge).

The mortgage rate will be difficult to match in December and you will probably find yourself paying around 6% unless things change dramatically in the meantime. That't the time to pay off part of your mortgage.