glennboltw Posted July 8, 2023 Share Posted July 8, 2023 (edited) I owe about 50k on my Mortgage and I'm due to inherit about 80k, should I pay off my Mortgage in full or invest the money? Edited July 8, 2023 by glennboltw Quote Link to comment Share on other sites More sharing options...
captainmed Posted July 8, 2023 Share Posted July 8, 2023 15 minutes ago, glennboltw said: I owe about 50k on my Mortgage and I'm due to inherit about 80k, should I pay off my Mortgage in full or invest the money? Depends on your mortgage rate. The £80K can earn you 6% (£4800) per annum in a fixed rate saver/bond. Quote Link to comment Share on other sites More sharing options...
TrickyTrotter Posted July 8, 2023 Share Posted July 8, 2023 Also depends on your marginal tax rate. As the Captain said you can get almost 6% gross on savings (8.5% in your local club's Bond😁), but if it's not in an ISA you'll have to pay tax usually on your interest. Quote Link to comment Share on other sites More sharing options...
glennboltw Posted July 8, 2023 Author Share Posted July 8, 2023 So for 40k @ 4.5% until April 2028 And 11.5k @2.59%till October 2025 Quote Link to comment Share on other sites More sharing options...
Nowack Posted July 8, 2023 Share Posted July 8, 2023 Assuming you will get charges for paying early the general consensus when we got financial advise is invest. We have 4 years left at 1.5% though. Quote Link to comment Share on other sites More sharing options...
glennboltw Posted July 8, 2023 Author Share Posted July 8, 2023 3 minutes ago, Nowack said: Assuming you will get charges for paying early the general consensus when we got financial advise is invest. We have 4 years left at 1.5% though. Yeah I get charges to pay off early, I can pay off 10% without any charges. Quote Link to comment Share on other sites More sharing options...
Site Supporter Biggish Dave Posted July 8, 2023 Site Supporter Share Posted July 8, 2023 Invest a few hundred quid and see an IFA who will give best advice specific to yourself rather than asking here Quote Link to comment Share on other sites More sharing options...
glennboltw Posted July 8, 2023 Author Share Posted July 8, 2023 1 minute ago, Biggish Dave said: Invest a few hundred quid and see an IFA who will give best advice specific to yourself rather than asking here Yeah that's what I will probably end up doing, I just want to get an idea in my head of the kind of things I should be thinking of and if there was a "general rule of thumb". Quote Link to comment Share on other sites More sharing options...
Site Supporter Biggish Dave Posted July 8, 2023 Site Supporter Share Posted July 8, 2023 There's no 1 fit all unfortunately. Depends on attitude to risk as much as anything. Having no mortgage is worth far more to some people rather than earning more interest in anything from a risky investment to safe bond. I personally would rather own my home outright to the detriment of earning interest, even if there was a bit of a penalty for doing it. Others would rather pay off the 10% and invest the rest until they can pay a chunk off again without penalty. Paying off my mortgage was my best decision for me at the time though not for overall wealth Quote Link to comment Share on other sites More sharing options...
Site Supporter Tonge moor green jacket Posted July 8, 2023 Site Supporter Share Posted July 8, 2023 Advantage of mortgage going would ward off any further rate rises- savings don't seem to increase as fast. Then again, I don't see rates so high for too long. If I had a little bit of cash available to take a risk, I'd be interested in shares in companies developing the new type of solid state batteries etc. As these start to revolutionise life span and charge density, they're going to be valued for domestic, industrial and transport applications. Quote Link to comment Share on other sites More sharing options...
royal white Posted July 8, 2023 Share Posted July 8, 2023 Bitcoin 😜 Quote Link to comment Share on other sites More sharing options...
RoadRunnerFan Posted July 9, 2023 Share Posted July 9, 2023 I'd second Biggish's advice and say see an IFA (where you pay for their time not by commission). If you do decide to invest some, low cost, broad based index funds are usually more suited to a beginner investor than taking a punt on individual stocks or sectors. Quote Link to comment Share on other sites More sharing options...
little whitt Posted July 9, 2023 Share Posted July 9, 2023 16 hours ago, glennboltw said: I owe about 50k on my Mortgage and I'm due to inherit about 80k, should I pay off my Mortgage in full or invest the money? all depends how long you got left on it if say 15 years you will prob pay Something like 100k on the 50k you owe if it was me i would pay it off you will still have 30k to invest / play money you can always start investing the xxxx amount you pay every month In Mortgage Payments Quote Link to comment Share on other sites More sharing options...
Moderators Casino Posted July 9, 2023 Moderators Share Posted July 9, 2023 In our case it was very much an emotional decision so possibly not one that made sense, so we paid ours off Just under 10 years left and interest rates were low Just nice to know we werent paying 400 every month Quote Link to comment Share on other sites More sharing options...
Moderators Carlos Posted July 9, 2023 Moderators Share Posted July 9, 2023 I'm not paying my mortgage off, I could, but I've got 2 years left at 1.7% or something. Banged it in an savings account paying way more than that. Easy. Stopped overpaying for the same reason. Quote Link to comment Share on other sites More sharing options...
Ani Posted July 9, 2023 Share Posted July 9, 2023 All depends on your circumstances. We took money out of Pension to pay ours right down, that was based on the monthly payments starting to eat into our monthly 'spending money' if you can pay off 10% with no charge I would be tempted to do that and then invest the rest but have some with easy access and pay another 10% of next year. If you get a charge of paying early it will quickly reduce the value of your repayment. Quote Link to comment Share on other sites More sharing options...
Sweep Posted July 9, 2023 Share Posted July 9, 2023 16 minutes ago, Carlos said: I'm not paying my mortgage off, I could, but I've got 2 years left at 1.7% or something. Banged it in an savings account paying way more than that. Easy. Stopped overpaying for the same reason. That's the ideal scenario right there Quote Link to comment Share on other sites More sharing options...
globaldiver Posted July 9, 2023 Share Posted July 9, 2023 If you’re a higher rate taxpayer, pension contributions would be compelling. Psychologically, it might feel pretty good to get your mortgage paid off. Quote Link to comment Share on other sites More sharing options...
Sweep Posted July 9, 2023 Share Posted July 9, 2023 1 minute ago, globaldiver said: If you’re a higher rate taxpayer, pension contributions would be compelling. Psychologically, it might feel pretty good to get your mortgage paid off. Indeed, that's what is be looking at for a chuck of it I think. Although, as stated above, it depends on each individuals circumstances Quote Link to comment Share on other sites More sharing options...
kent_white Posted July 9, 2023 Share Posted July 9, 2023 22 hours ago, glennboltw said: I owe about 50k on my Mortgage and I'm due to inherit about 80k, should I pay off my Mortgage in full or invest the money? Spend it on cocaine and whores Quote Link to comment Share on other sites More sharing options...
Sweep Posted July 9, 2023 Share Posted July 9, 2023 25 minutes ago, kent_white said: Spend it on cocaine and whores And then waste the rest Quote Link to comment Share on other sites More sharing options...
dave2980 Posted July 9, 2023 Share Posted July 9, 2023 30 minutes ago, Sweep said: And then waste the rest On a stint in rehab only to relapse within a week of leaving? Quote Link to comment Share on other sites More sharing options...
Site Supporter Spider Posted July 9, 2023 Site Supporter Share Posted July 9, 2023 Do NOT invest in any European companies or stocks. Keep it all in Britain. Patriot🇬🇧 Quote Link to comment Share on other sites More sharing options...
Site Supporter Biggish Dave Posted July 10, 2023 Site Supporter Share Posted July 10, 2023 Give it a rest ffs Quote Link to comment Share on other sites More sharing options...
Site Supporter Spider Posted July 10, 2023 Site Supporter Share Posted July 10, 2023 50 minutes ago, Biggish Dave said: Give it a rest ffs 🎣 🎣🎣 Quote Link to comment Share on other sites More sharing options...
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