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I cant deceide what to do.
Owe 12.5k on my mortgage at a rate of 5.99% fixed till oct 2012. And have roughly that in a stocks and shares isa, which is mainly European stocks so as a general rule if the ftse is doing ok, it is too. Now I think the ftse will rise over the next 2 yrs but maybe only a little so surley Im better paying it off??
Now when I say pay it off I plan to get it down to like £100 and then pay really small payments just incase I want to borrow again. It ll be hard for me to get one once i ve finished uni in 4 yrs.
Opinions and downsides most welcome.
Owe 12.5k on my mortgage at a rate of 5.99% fixed till oct 2012. And have roughly that in a stocks and shares isa, which is mainly European stocks so as a general rule if the ftse is doing ok, it is too. Now I think the ftse will rise over the next 2 yrs but maybe only a little so surley Im better paying it off??
Now when I say pay it off I plan to get it down to like £100 and then pay really small payments just incase I want to borrow again. It ll be hard for me to get one once i ve finished uni in 4 yrs.
Opinions and downsides most welcome.
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wait until we all dip into recession and the stock market falls and at the same time interest rates shoot up. Then you'll be trying to turn back time
interest rates low for next 5 yrs...remain cash rich instead of paying off mortgage imo
Only think stopping me is I like the idea of having a buffer so to say so may compromise and pay off 5k and have a tiny mortgage for 3 yrs or so. Decisions decisions
agreed cash is king. such a cliche but so so true.
Decisions decisions
nevertheless a nice decision to have to make
nevertheless a nice decision to have to make
For goodness sake. To make the right decision we need to know what penalties the lender will charge and who the lender is. Obviously if penalties are low why pay 5.99% ! Having said that 5.99% of £12500 is only £62 per month.., and som elenders may charge as much as 5% Early Repayment charges
b
b
ffs an early repayment charge
, you couldn't make it up
, you couldn't make it up
Put £5k in Desire Petroleum (DES)
----£5k in Rockhopper (RKH)
----£2.5k in Pursuit Dynamics (PDX)
Better than gaining £62 pm in saved mortgage int..
Payback mort in Devalued £££'s in the year dot
----£5k in Rockhopper (RKH)
----£2.5k in Pursuit Dynamics (PDX)
Better than gaining £62 pm in saved mortgage int..
Payback mort in Devalued £££'s in the year dot
Why not put 12k on Pompey to beat Leicester tomorrow night? 6/4
simple choice.Your mortgage costs 6%.If you take the 12k and invest it instead of paying your mortgage what will the returns be after tax? more than 6%?
more than 6 invest
less than 6 pay mort.
technically you should add in the value of returns on payments as well.But at 12k it too small to worry.
the only other consideration is the feeling of having cash up your sleeve versus not.
I can tell you the feeling of NOT having a mortgage is fantastic.
more than 6 invest
less than 6 pay mort.
technically you should add in the value of returns on payments as well.But at 12k it too small to worry.
the only other consideration is the feeling of having cash up your sleeve versus not.
I can tell you the feeling of NOT having a mortgage is fantastic.
chisel 20 Sep 10 16:00
Why not put 12k on Pompey to beat Leicester tomorrow night? 6/4
Hope you didn't advise your clients to do this chancers bet as the debt laden Pompey lose yet again .
Why not put 12k on Pompey to beat Leicester tomorrow night? 6/4
Hope you didn't advise your clients to do this chancers bet as the debt laden Pompey lose yet again .
Leicester on a roll,played the mighty Cardiff off the pitch last week too.
Sorry not looked in for a week or so.
Pretty sure that early repyment charge is 2%.
Current situation, ISA worth 13,400 Mortgage now 11,900.
And Mr Ben I would have to gamble on my ISA rising the 6 % which very very roughly would have the FTSE at around the 6200 mark. Which I think it wil do next summer maybe???
Pretty sure that early repyment charge is 2%.
Current situation, ISA worth 13,400 Mortgage now 11,900.
And Mr Ben I would have to gamble on my ISA rising the 6 % which very very roughly would have the FTSE at around the 6200 mark. Which I think it wil do next summer maybe???
Also if I was strict with myself I could just put whatever money I would have used to pay the mortgage off monthly into any form of saving and therefore I think this has to be a no brainer.
P.s plan was to pay off 95% of it and just pay £50 a month for the remainder of the 2 yrs left to run as opposed to paying any early repayment charge. If they let you do that. They have let me get thus far after all.
P.s plan was to pay off 95% of it and just pay £50 a month for the remainder of the 2 yrs left to run as opposed to paying any early repayment charge. If they let you do that. They have let me get thus far after all.
And Mr Ben I would have to gamble on my ISA rising the 6 % which very very roughly would have the FTSE at around the 6200 mark. Which I think it wil do next summer maybe???
I dunno what a ISA is but if you consider interest rates will be higher ober the term of the loan just fold that into your calculations.Its quite straightforward reaaly.In any case your talking small numbers, cant see that it would have a material effect on your net situation?
I dunno what a ISA is but if you consider interest rates will be higher ober the term of the loan just fold that into your calculations.Its quite straightforward reaaly.In any case your talking small numbers, cant see that it would have a material effect on your net situation?
no expert but payed mine off 6 yrs early a few months back with a redemption fee,dont think its as easy as you think to avoid the redemption fee,your rates over the length of your mortgage so whats in it for them to let you pay of early and avoid the early fee
What would happen when in 2012 I take the remainding x amount elsewhere will I still have to pay a penalty?? I only agreed to 5 yrs with them.
As I stated my plan was to get it right down to say 2 grand and then just pay say £70 month till oct 2012 and my 5 yrs is up.
As I stated my plan was to get it right down to say 2 grand and then just pay say £70 month till oct 2012 and my 5 yrs is up.
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