Do you really think that everyday pensioners have the means to do other wise?

Most pensioners are lucky to have even an ISA. 10k in an ISA brought in roughly £60 montly 4 years ago.

£60 a month to some pensioners is the difference between existing and freezing to death.

Throw a large dose of inflation in there, (RPI) as what has been going on for a fair while and things get really tough.

Where else would a pensioner put 10k of life savings that they might need to dip into at any time. Pensioners on low incomes can't afford to lock cash away.

QE and current interest rates are really nothing but theft by the government.

Yup, can only assume the term 'opportunity cost' is yet to reach oop North...

Well he could get knocked Dow by a bus tomorrow so in some ways living for today is the best. At least you will have an interesting life rather than oh look at me paid off my mortgage early but oh st never got to enjoy life though

He's not a business though, he's an employee on PAYE.

What kind of thing would you suggest he does with his spare £700/mth?

He'd think the idea of investing the money even more bizzare than reducing his mortgage capital.

Still don't think you're hearing me.

Even if he had zero business acumen and no balls he would be better off keeping the funds on cash deposit at a rate of interest even a fraction above the 0.18% he was paying out. Lets say 0.19%, hell I'd keep it on deposit at parity of 0.18% rather than pay down the mortgage because once it's in it's tied up. Flexibility is something smart people value. You still have the option to pay down the mortgage should the rates start to creep up above what you are achieving in interest, but, crucially, should rates stay low you have kept your choices open. The only caveat to this being that you need to ensure you mortgage policy allows you to pay off lump sums at a later date. Certainly most will allow 20k a year so unlikely to exceed that in your example.

Forget about him for a second and appreciate my central point, which is, with respect; your advice was poor. Think before you chide us Southerners, you never know, you might learn something.

ME being thick, nice one. Two posts ago you couldn't see how one could effectively utilise £700 per month to exceed a very low interest payment. What your pal actually chooses to do isn't really relevant, certainly not at the point you typed on page one of this thread, you brought the whole squandering thing in later to support your dubious position.

Your advice was as lame as your pathetic stab at 'Southerners', no wonder he ignored you, I can see the appeal.

You're right - I'll suggest the handbags to him, that sounds like a good idea.

Muppet, if only you knew!

My friends wife uses some of his disposable income to do exactly that. She started out small just sending hangbags to Thailand. She now does a container a month of all sorts of clothing etc... Pulls in 2-3k a month which is a nice little supplementary earner whilst shes looking after the kids.

We are going to be moving soon, but increasing the mortgage, plan on trying to at least carry over a proportion at the low rate, wil see what they say.