Looking at healthy savings in my early 50's, I can see poor % return and risk on what's in the current market to invest. As a mortgage payer with 12 years to finish, is it worth executing lumpsum paydowns to avoid what would be compounded interest? I'd be interested in maintaining the same monthly repayment over a shorter term too. I'm interested to hear other people's views / experiences. Also, what variables I may not be considering...
Mortgage Paydowns
- Thread starter PhilHD
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Brendan Burgess
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Yes, it generally makes more sense to pay off a mortgage than to invest as the return on paying your mortgage is tax-free and risk-free.
However, it may make more sense to contribute to a pension if you have scope to do so and if you get 40% tax relief on contributions.
In some rare cases, if you have fixed your mortgage at a very low rate, you might be able to get a higher deposit rate after tax.
Brendan
However, it may make more sense to contribute to a pension if you have scope to do so and if you get 40% tax relief on contributions.
In some rare cases, if you have fixed your mortgage at a very low rate, you might be able to get a higher deposit rate after tax.
Brendan