£50 a month - Buy shares or chip away the mortgage

[heisthegaffer]

Hi guys, as above, if you had a spare £50 a month you didn't have before, would it be better buying a few shares every month or pay it off the mortgage every month?

Thanks

[dingg]

mortgage without a doubt

[Noble Anonymous]

Mortgage. Check your terms and conditions re;over paying first though.

The dealing costs on £50 per month would be prohibitive.

[heisthegaffer]

Thanks guys, i will definitely check the terms and conditions.

[jdwoodbury]

You can invest in a shares ISA without execessive costs through someone like H&L, £50 per month id the minimum investment for a fund. It is of course a gamble so the same bet is overpayment on the mortgage assuming you cannot beat the interest rate with a savings account.

Try this

http://www.moneysavingexpert.com/mortgages/mortgag...

[BoRED S2upid]

yammyfan said:

This. Buying stock will cost you a fortune in dealing costs. Unless you fancy using it to spread bet on a stock i would pay the mortgage.

Have a look at Halifax Sharebuilder account only £1.50 a trade, ideal if you want to own some shares and aren't too bothered about selling them quickly or buying them that day. Its a cheap way of buying shares.

[Sossige]

Noble Anonymous said:

Mortgage. Check your terms and conditions re;over paying first though.

Another vote for a mortgage here, with the following caveats:

1. You aren't going to be penalised for overpaying
2. You don't have any other more expensive debts (pay them off first)
3. You have some money available for emergencies etc

I am a big fan of getting rid of the noose around my neck that is the mortgage. Imagine the freedom of being able to not worry about being made redundant, or being able to do what you want to do because you are financially 'free'?

Any regular overpayment has the potential to make a significant dent in the mortgage term/balance/charges.

Edited by Sossige on Thursday 21st July 00:00

[munky]

Sossige said:

Noble Anonymous said:

Mortgage. Check your terms and conditions re;over paying first though.

Another vote for a mortgage here, with the following caveats:

1. You aren't going to be penalised for overpaying
2. You don't have any other more expensive debts (pay them off first)
3. You have some money available for emergencies etc

I am a big fan of getting rid of the noose around my neck that is the mortgage. Imagine the freedom of being able to not worry about being made redundant, or being able to do what you want to do because you are financially 'free'?

Any regular overpayment has the potential to make a significant dent in the mortgage term/balance/charges.

+1

Also, shares - especially in this environment - could quite easily fall in value, whereas your mortgage borrowing cannot increase unexpectedly. (yes the interest rate can and will go up, but all the more reason to pay off more now)