€20k - Clear Mortgage or Invest?

C

Ciadan

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I have €20,000 as a result of a recent sale. My mortgage has €20,000 left on it - paying €278 (fixed) per month with 6 years left.

My question is - would I be better to clear this mortgage and save the €278 per month or invest the €20,000/put in a high interest a/c for the next 5 years?

Any advice appreciated.
 
Easy answer

Will your money earn more interest on deposit than you are paying back over the next 6 years ?

What is the interest rate you are currently paying versus what you will get in the best lump sum deposit accounts. They are listed in the Financial best buys forum.

If it was me I would just pay off the mortgage & be done with it, but thats just me.
 
I missed the bit wherer you say your mortgage is fixed. There may be penalties for early repayment. Discuss these with your bank as it will probably influenece your decision greatly.
 
Thanks for your reply Pauliwalnuts.

Pauliwalnuts said:
If it was me I would just pay off the mortgage & be done with it, but thats just me.
Click to expand...

This is the way we were thinking of going, but just wanted to see if it was the right thing to do. I've checked with ICS and they've confirmed that there will not be a penalty to clear the mortgage.
 
Be aware that if you pay off your mortgage you will find it more difficult to take out a loan in future. Bizarre as it seems you are more attractive with debt than without.
 
Important to get the age profile of the OP. If you are elderly (or close to retirement) you may find it difficult to borrow that sum of money for investment in the future.
 
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