{"id":5539,"date":"2015-10-16T10:27:08","date_gmt":"2015-10-16T10:27:08","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=5539"},"modified":"2018-02-19T13:38:01","modified_gmt":"2018-02-19T13:38:01","slug":"pay-off-the-mortgage-or-invest-for-the-future-2","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/pay-off-the-mortgage-or-invest-for-the-future-2\/","title":{"rendered":"Pay Off The Mortgage or Invest For The Future?"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p class=\"Body\"><b><span lang=\"EN-US\" style=\"font-size: 12.0pt;\">With <a href=\"https:\/\/www.thehouseshop.com\/mortgages\" title=\"mortgage rates\">mortgage rates<\/a> lowering, it seems logical to first pay that off before investing in your <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a>, however,\u00a0an investment could see you better off down the line.<\/span><\/b><\/p>\n<p>The current interest rates mean you could be shot of your debt quite quickly and therefore be able to pay more towards your pension for a better quality of retirement. On the other hand, the risk of putting money into your property and going into <a class=\"wl-entity-page-link\" title=\"Buy to let\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/buy-to-let\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/buy_to_let;http:\/\/rdf.freebase.com\/ns\/m.083ycg;http:\/\/dbpedia.org\/resource\/Buy_to_let\" >buy-to-let<\/a> is very tempting\u2026 After all, is there much point in paying your <a class=\"wl-entity-page-link\" title=\"Mortgage loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/mortgage-loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan;http:\/\/rdf.freebase.com\/ns\/m.0273t5w;http:\/\/dbpedia.org\/resource\/Mortgage_loan\" >mortgage<\/a> off so soon if such a small figure?<\/p>\n<p>The most prudent option seems to be to pay off your mortgage straight away. You went through the same thing paying off student <a class=\"wl-entity-page-link\" title=\"lenders\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan;http:\/\/rdf.freebase.com\/ns\/m.01dnzs;http:\/\/dbpedia.org\/resource\/Loan\" >loans<\/a>, and it was borrowing money that lead the UK into the recent recession. The little angel in your mind is telling you to clear off as much debt as you can. If you keep your current payment levels, you\u2019ll be overpaying each month and could save tens of thousands of pounds in interest and have it over and done with about three or even four years early. Even of you would prefer paying a fixed mortgage, you could still save on interest up to about \u00a314,000 and still be free from debt two years earlier.<\/p>\n<p>This is certainly the most sensible option and if you\u2019re that kind of person, you\u2019ll probably relax a little more knowing your finances are on track.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter\" src=\"http:\/\/weonlydothisonce.com\/wp-content\/uploads\/2013\/03\/FE_PR_100316_MiddleClass_Debt425425x282.jpg\" alt=\"\" width=\"425\" height=\"282\" \/><\/p>\n<p>That being said, maybe you don\u2019t want to tread too carefully because you\u2019d prefer a better payoff in the future for your hard work. With borrowing rates this low, it makes sense to ameliorate your assets while you have the chance to do so. Your <a class=\"wl-entity-page-link\" title=\"homes\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >home<\/a> is worth a <a class=\"wl-entity-page-link\" title=\"Land lot\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/land-lot\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/land_lot;http:\/\/rdf.freebase.com\/ns\/m.0gs32y;http:\/\/dbpedia.org\/resource\/Land_lot\" >lot<\/a>, but it could be worth even more if you invest in it. You could even take advantage of borrowing <a class=\"wl-entity-page-link\" title=\"Rates (tax)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/rates-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax;http:\/\/rdf.freebase.com\/ns\/m.03hnzm;http:\/\/yago-knowledge.org\/resource\/Rates_(tax);http:\/\/dbpedia.org\/resource\/Rates_(tax)\" >rates<\/a> to buy a second property <a class=\"wl-entity-page-link\" title=\"Renting\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/renting;http:\/\/rdf.freebase.com\/ns\/m.01y857;http:\/\/dbpedia.org\/resource\/Renting\" >to let<\/a>. The financial outlook for this year screams that if you want to buy-to-let, you should do it now &#8211; it\u2019s the perfect opportunity. And not only could you profit from taking rent, there is also the possibility of your <a href=\"https:\/\/www.thehouseshop.com\/property-to-rent\" title=\"rental property\">rental property<\/a> rising in <a class=\"wl-entity-page-link\" title=\"Value (economics)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/value-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/value_economics;http:\/\/rdf.freebase.com\/ns\/m.0bhr4z;http:\/\/dbpedia.org\/resource\/Value_(economics)\" >value<\/a> with time.<\/p>\n<p>If you\u2019re looking to make some money through the property ladder, the latter option may be suited to you. Investment in homes and renting properties is advantageous in the long run as long as you get in there as soon as possible.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter\" src=\"http:\/\/kimflynn.com\/wp-content\/uploads\/2014\/11\/invest-in-your-business.jpg\" alt=\"\" width=\"400\" height=\"339\" \/><\/p>\n<p>If you would rather be cautious and ensure you are out of debt soon and can invest in your pension, you would do better to pay off your mortgage as soon as possible. But if you\u2019d prefer to see your assets rise while rates are low, the time is nigh to invest, invest, invest!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With mortgage rates lowering, it seems logical to first pay that off before investing in your property, however,\u00a0an investment could see you better off down the line. The current interest rates mean you could be shot of your debt quite<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/pay-off-the-mortgage-or-invest-for-the-future-2\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":4169,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[15,13,17],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2015\/05\/invest.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/pay_off_the_mortgage_or_invest_for_the_future_","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/5539"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=5539"}],"version-history":[{"count":2,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/5539\/revisions"}],"predecessor-version":[{"id":14975,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/5539\/revisions\/14975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/4169"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=5539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=5539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=5539"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=5539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}