Payoff Mortgage Early or Put on deposit/equities

M

Metafora

Registered User
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5
Hi,
Reading some of the other posts i realise i am in quite a fortunate position compared to some other posters. I hope they get through it ok.

My situation is as follows. I have approx 180K left on mortgage at the moment. Currently i have a 30 yr mortgage at ECB + 1.15% Tracker. House is probably worth approx 260K.

I have no other debt and will have approx 80K in a lump sum by August.
Should i
a) just pay off say 60K off my mortgage and reduce term of loan (saves approx 11yrs and approx 30K in interest i think.)
b) Pay off 60K and reduce my repayment each month and leave term alone (I would pay more interest back to bank this way i think),. Can use spare cash for regular saving/equities etc.

c) Invest in fixed term savings etc.

Is it too simplistic to say if i can get a better rate in saving interest than what my mortgage interest is than i should go with that. I know i need to consider DIRT and on the flip side should i make use of my Mortgage relief .

Advice appreciated.
 
Perhaps you should clarify if your career has/has not been affected by the global downturn,the recession etc...posters may then give you a better idea on what to do.
 
Yep, I will be made redundant end of August.
I am single with approx 20K in stock and 10K in savings
 
If I were you I'd be keeping my cash, you don't know how long you you will be redundant for.
 
doberden said:
If I were you I'd be keeping my cash, you don't know how long you you will be redundant for.
Click to expand...

Yes, better off to hold onto it...

Put it into a high interest lump sum account, with readily available access to it when you need it.
 
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