I have about 拢50k to invest but am thinking the best return would just to be to pay off some of the mortgage?

My mortgage is up for renewal on the 1st November and don't think there is any saving scheme that can beat what I would be paying in interest on the property after tax? I have maxed out mini cash ISA this year. Mortgage I am going for is a Nationwide tracker at 0.48% above base rate. It is a little more as it has no fees as mortgage would be relatively small after lumpsum. Nationwide are my current lender so I don't need any surveys or valuations done and is fairly competitive. But I am wondering if there are any safe investments that would give a guaranteed better return after tax than the quoted mortgage rate? Any advice or thoughts?

You're quite right. If you have a mortgage with an interest rate of, say, 7.5%, that means you have to earn 9.375% of the mortgage amount every year just to pay the interest (because there is no tax relief on interest payments) - or 12.5% if you are a higher rate tax payer. Safe investments that pay over 9% are few and far between!

What I'd do is maybe put aside 拢7k as cash to set up a maxi ISA next year and pay the rest off the mortgage. The reason for keeping the ISA is that you want a "rainy day" fund you can access without having to sell or remortgage your home.

lucky you.

Invest 拢1022 in me! Plz! Lol

In investments, higher yields impose higher risks.

Give it to me... I'll look after it for you. lol

Mortgage is always the biggest debt anyone has... pay that first. Then alot less to worry about, should you lose your job or whatever.... also... it's always still there (remortgage) if you need it again.

the safest one is the bank of ME
I will look after it for you and I have a BIG dog so nobody will rob me

Check if Nationwide allow flexibility for you to drawdown on your mortgage later. Then pay off a lump sum using the money you have, and if you need it for an emergency, you can draw it back down if necessary.

The alternative is to go for an off-set mortgage. This allows you to hold the money in a savings account, but it acts as though it it paid off on your mortgage. The net result is that basic rate tax payers get the equivalent rate of over 7.5% tax free on their savings, as they save this amount on their mortgage.

Marry me lol. Property is often a good investment long term but even that may suffer a downturn. I persoanally would pay some of my mortgage off and invest the rest as a comfort zone.

I agree with your thinking. There is no investment that will beat a mortgage rate after tax, with a high degree of safety. As for the stock market, unit trusts give a pitiful income and shares held directly are too frightening to behold, after what happened to Northern Rock share holders.

if your mortgage has a low interest rate, let it go.

you could try the money market or fixed term deposit, they normally give a fixed return based on the current rate, lloyds tsb do it and the last one my boss had was at 4.01%.

they normally do this for 拢50k + and you can choose how long to leave it on deposit for, my boss does it for 1 week at a time, but obviously you are kinda gambling on what the interest rate will be as it does fluctuate up and down.

you could try a longer low risk deposit of say 5 years but depending on what type it is depends on whether it will make any money and whether you could lose money.

best bet is to pay it against ya mortgage as it will save in interest as mortgage rates are a few % higher than savings rates.

Lucky you indeed! With this kind of cash you could look at a really great property investment deal. A buy to let mortgage would be a perfect investment opportunity. Enjoy!