Pay off mortgage or invest/save????

mateus

Help!
Is it best to pay a large amount off a mortgage or invest in ISA's etc and leave mortgage as is? Mortgage is flexi so no penalties for overpayments etc.

Thanks

Ian_W

Hi Mateus - I know your sister Rosy quite well!! :beer:

General rule of thumb, I would suggest you keep some "rainy day" savings and certainly use you cash ISA allowance. If you haven't got much in savings, I'd look at building up 6+ months mortgage payments tide you over for unexpected events.

Then look at any other debts you've got. Mortgage is usually your biggest debt but, apart from 0% cc or other low cost finance deals, it's also usually the cheapest. HP or personal loans can penalise you for early repayment but if you can get rid of any more expensive debt do that next.

Then look to overpay the mortgage, again only if/when you can do it w/o penalty. There's a thread a bit earlier about paying off the mort early by "funkeygibbons" - well worth reading.

dunstonh

There are a couple of threads asking the same in the last week. Take a look at those.

Thefunkygibbons

Ian hit it on the head

The thread that caused a bit of debate is in my sig

There is acalculator link in that thread for how much it saves

roversbabe

thats great - thank you