Pay off mortgage or buy more shares?

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noggy1810

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I have a mortgage of 170k approx outstanding and am repaying 1.5k a month comfortably off it (variable tracker with monthly overpayment). I also have shares in ISEC quoted companies worth 45k. Having recently come into a few bob, 30k, should I purchase more shares or pay down my mortgage.All friends have different advice! I am topping up my pension to the max and have no SSIA.
 
too late now to take out SSIA!

My own opinion, and you will get as many to disagree as you will to agree, is that you should pay off the mortgage.

My humble philosophy is that once the house is debt free, then it does not matter what happens to work as you cannot lose the house. it is a great comfort to be debt free and the savings on the mortgage every month can make a huge difference to ones social life. it can buy extra little treats that previously were not possible.
 
Thanks very much, that is my own opinion but friends who are more financially savy than me disagree and have no interest in reducing their mortgage, but aquiring as many assets(shares and property) as soon as possibl. We are all hovering around the 30 y.o mark.
 
noggy1810 said:
Thanks very much, that is my own opinion but friends who are more financially savy than me disagree and have no interest in reducing their mortgage, but aquiring as many assets(shares and property) as soon as possibl. We are all hovering around the 30 y.o mark.
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They'll change their tune with a few more .25% increases in their interest rate especially if the market's long bull run turns
 
it boils down to what you want to do. technically your friends are probably right in that 30K over 20 years "should" make more in shares and property than you would make/save over the term of the mortgage.ie 30k at say 5% over 20 years generates 30k in interest savings, it would be reasonable to expect 30k of property or shares to more then double over the same period of time.
it depends on what level of risk/consolidation you want.
I personally would reduce the mortgage and keep my repayments the same thus reducing the term of your mortgage.
i think that the winds of change are coming and it might be a good time for some debt consolidation and tightening of belts.
 
Your friends are only more financially savvy if/when the return on their assets is greater than the cost of their debts. I think paying down your mortgage is a fine idea. You already have a share portfolio and have maxed out your pension, why not ease the cost of servicing your debt?
 
if you are unsure, play it safe and payoff what you owe.

shares might not be a great bet at the moment, most of them that is.

bird in the hand and all that.

of course, tax works against you on this,

max out your avc's if you can, and your partners,
and if you don't need the money fro a while, and don't want to buy shares, stick it into a fixed term account. you'l get 6% odd percent, more the longer you lock in.
Your mortage is costing you aprox 4.5%...your going to make a few quid...

feeling like a flutter buy into energy and recession proof industires like food/fuel/agri/pharma...and maybe healthcare...we are living longer, nursing home stock is worth some attention.
 
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