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Investment of mortgage?


I've managed to save 拢100,000 which is equal to the outstanding mortgage I owe on my home. Is it best to keep that money as investment or should I pay off my mortgage and start my investments again from zero?

Pay off a large portion, but invest some, you never know when you may need it. The web-link below has a question and answer that is similar to yours.

Pay off your mortgage, especially when the interest rates are the way they are at the moment.

You should (as financial people used to like to say) "run the numbers." Do you get any tax deduction for your mortgage payments? If so, how much do you save? Is that less or more than the after tax total returns you would get if you invest the money?

First you need to understand what you want to do? Do you want to become an active investor? If so, then start educating and training yourself to become an investor. Maybe buy a rental property, or start a portfolio of shares. But first know what you want to achieve. But if you cannot make up your mind, consider the following:

If you can invest your money, and get a monthly payment that exceeds the mortgage payment, make the investment and pay of the mortgage on a monthly basis. At the end, you will still have your capital, as well as a paid off house.

If not, then consider paying of the mortgage, and then add the mortgage payment to the amount you used to build the GBP100 000.

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