Q&A

Answer a question



12 December 2008

Should I pay £20k off the mortgage or invest it in my pension?

I have about £50,000 to invest but do not know what to do for the best. I have a good sized pension which I pay into every month (I am 45); 2 new ISAs and a rather large but affordable mortgage with 18 years to run. I have no option to move to an offset mortgage at the moment. I also have £15k in savings in the bank. I was thinking of doing one of the following things but have no idea of the pros and cons of these routes: - pay money off the mortgage - pay more money into my pension - buy some shares - pay more into my ISA - buy a buy-to-let using the equity from my house to fund a new flat - buy a plan for a new house not yet started and hope to make money on it when it's built and/or rent it out Can anyone offer any advice? My financial advisor just tells me to do what I think is best and is now hassling me to put £10k immediately into my pension - my £20k would give me £5k back in tax relief and provide £25k into my pension...

  • REPORT This comment has been reported.

8 Answers

Answers


Be the first to answer

Do you want to answer this question? You need to be signed in for this feature

Answer a question


Be the first to ask a question

  • {{ question.title }}

    {{ question.authorName }} On

    {{ question.answerCount }} Answers

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom.


Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards.


While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.