About three years, I reckon.Thanks again Sarenco. I'll be back to you when my mortgage is paid off.
I don't think he should pay off his mortgage at all. You never know what's around the corner and someone with it paid off could have great difficulty in getting access to money if it were required, far easier if you have an existing mortgage to get a top up.
At the moment, does it make more sense to put away 1k per month at 4% with nationwide or 4.5 with KBC which would be the same as 80% ltv mortgage rate. It allows you to save cautiously and pay off the mortgage as a lump sum rather than monthly. As brilliant as it is to pay off the mortage early, once money goes into the mortgage it ain't coming back out
DIRT will take 41% of any gains from these accounts and thus neither will come close to matching the savings I make from overpaying my mortgage monthly.
But if you can suggest a better investment vehicle, I'm all ears.
As brilliant as it is to pay off the mortage early, once money goes into the mortgage it ain't coming back out
I've been mulling over this point. My only counter-response is that once it's paid off early, your income is freed up to be invested. By not paying off your mortgage, I do see it as effectively taking borrowed money (your mortgage) to purchse investments.
To be clear, I invest 15% of gross income into a pension, as well as paying off my mortgage faster than originally planned. That doesn't seem to lie in with my argument above. Perhaps it's mostly psychological, knowing that at least I'm building up some type of pension fund years before the mortgage itself is paid off.
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