Discussion
I have around 18k in savings that I may put towards paying off my mortgage in 3 years time, in the meantime I have it sitting in a normal savings account.
Stupidly I've never really given it much thought, thinking all banks offer stupidly low interest rates with every account, that it's pointless even thinking about it. The subject came up with a colleague, and he told me I was crazy, and there's plenty that can be done with that in the bank.
Any suggestions?
Stupidly I've never really given it much thought, thinking all banks offer stupidly low interest rates with every account, that it's pointless even thinking about it. The subject came up with a colleague, and he told me I was crazy, and there's plenty that can be done with that in the bank.
Any suggestions?
Can you pay the mortgage, or part of the mortgage, off early? Whatever you are paying on the mortgage is the net hurdle rate for any investment. If you are paying 2.5% on your mortgage the if you are a basic rate tax payer you need to earn 3% to make more than you are paying. More if you are a higher rate tax payer, maybe the same if it is a capital gain and you haven’t used your allowance.
Risk free rates (eg less than 85k in a Uk bank) at the moment are <0.5%. Anything you invest in that pays you more, or has the potential for a capital gain means more risk. Broadly speaking the higher the potential reward the greater the risk. Only you can determine your risk appetite....
Risk free rates (eg less than 85k in a Uk bank) at the moment are <0.5%. Anything you invest in that pays you more, or has the potential for a capital gain means more risk. Broadly speaking the higher the potential reward the greater the risk. Only you can determine your risk appetite....
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