Should I overpay my mortgage or 投資する? 減ずるing 負債 is the 'safety first' 選択, but 投資するing can bring higher returns, says ROB MORGAN

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減ずるing your mortgage: You will save thousands of 続けざまに猛撃するs in 利益／興味 by 支払う／賃金ing your 負債 負かす／撃墜する sooner

略奪する Morgan is 長，指導者 投資 分析家 at Charles Stanley.

Homeowners with a mortgage 直面する an 現在進行中の 財政上の 窮地 ? use any 超過 cash to 支払う／賃金 負かす／撃墜する the 負債 or 投資する instead?

It's a simple question, but the answer really depends on personal circumstances: age and 職業 status, the 条件 of the 貸付金 and the 利益／興味 率, and, very importantly, whether you are a 危険 taker or more 危険 averse.

Rising 法案s and 財政上の 圧力s mean not everyone will have money to spare at 現在の, but if you do either now or in the 未来 then let's look at the 問題／発行するs you need to consider, and some questions you need to ask yourself when making a 決定／判定勝ち（する）.

支払う／賃金ing off your mortgage: Safety first?

One thing is for sure, you'll save thousands of 続けざまに猛撃するs in 利益／興味 by 支払う／賃金ing your 負債 dow n sooner.

Mortgage 支払い（額）s are made up of two 構成要素s; 利益／興味 on the 貸付金 and a '主要な／長／主犯' 量, which goes に向かって 支払う／賃金ing 負かす／撃墜する the 優れた balance.

The longer you have the mortgage and the higher the 利益／興味 率, the more you 支払う／賃金 in 利益／興味. This is 特に true in the 早期に years when the 貸付金 balance is larger, and you are 比例して 支払う／賃金ing a lot more on the 利益／興味 than the 資本／首都.

Yet overpaying your mortgage - 支払う／賃金ing more than you need to under the 条件 of the 貸付金 協定 - comes with an '適切な時期 cost'.

In other words, had you 投資するd the money could you have 達成するd a return in 超過 of the 利益／興味 on the 負債?

At higher mortgage 利益／興味 率s there is arguably いっそう少なく of an 適切な時期 cost. It is one thing bettering a 2 per cent or 3 per cent 率 with 投資 returns, but 達成するing 上向きs of 6 per cent 終始一貫して is much more difficult.

略奪する Morgan:?If you do decide to 支払う／賃金 負かす／撃墜する or 支払う／賃金 off a mortgage you must consider any 刑罰，罰則s for doing so

The higher 利益／興味 率s are the more it makes sense to 返す 負債 as quickly as possible. That's why high 利益／興味 負債s such as credit cards or personal 貸付金s should be repaid as a 優先.

However, there can be such a thing as 'good 負債'.?

High インフレーション can mean your 負債 erodes away in relation to prices and your 収入s, 供給するing you keep up the 返済s.?

一方／合間, the 現在の 環境 of rising 利益／興味 率s is a worry for many mortgage 支えるもの／所有者s, but much depends on the trajectory of 利益／興味 率s in the 未来, not ju st the next couple of years.

If インフレーション and 利益／興味 率s stay high over the medium to longer 称する，呼ぶ／期間／用語, then 減ずるing 負債 is likely to be wise.

However, it is also possible 率s could come 負かす／撃墜する やめる はっきりと and the cost of mortgage 負債 returned to the low levels we have experienced for the past １０年間 or so.

The good news is that inflationary 圧力s appear to be 緩和. When （疑いを）晴らす 証拠 現れるs these are on a 穏健なing 傾向, central banks can 緩和する off 引き上げ（る）ing 利益／興味 率s to tame runaway prices.

Those 適用するing for mortgages now, 同様に as those on variable 率s, may 直面する an uncomfortable period of higher 返済 costs, but this might 井戸／弁護士席 abate in the medium 称する，呼ぶ／期間／用語.

If you do decide to 支払う／賃金 負かす／撃墜する or 支払う／賃金 off a mortgage you must consider any 刑罰，罰則s for doing so.?

早期に-返済 告発（する），告訴（する）／料金s often 適用する during any 直す／買収する，八百長をするd or 割引d period and are usually calculated as a 百分率 of the 量 you 返す.

Often, these are tiered and 落ちる away over time.?

Depending on circumstances, it can be 価値（がある） 支払う／賃金ing an ERC as the 利益／興味 saving could be more than the 料金 incurred.?

My 判決: Although many people would consider it an inferior 大勝する from a mathematical 視野, prioritising a smaller mortgage over 投資するing can make your 財政上の position more resilient.

It may give you greater 支配（する）／統制する and more 選択s, and it could 減ずる 苦悩 about an uncertain 未来.

加える when you overpay your mortgage, the 負債 will 縮む and you will have more 使い捨てできる income, which could 基金 出資／貢献s into 年金s or other 投資s.?

Use your 年金: You can get a 重要な 脚 up on the money you 投資する from 税金 救済, and 潜在的に from your 雇用者 if you use your work 計画／陰謀

投資するing your spare cash: Prioritise your 年金

Building wealth over １０年間s by 配分するing 資本／首都 to 井戸／弁護士席 managed and growing companies has, 歴史的に at least, been a reliable way to grow wealth.

However, to fully harness the 力／強力にする of the 株式市場 and enjoy the 利益 of 構内／化合物d returns, you need to leave your money 投資するd for a long time - an 絶対の 最小限 of five years but ideally １０年間s.

An important factor that might 攻撃する the balance in favour of 投資するing over 支払う／賃金ing 負かす／撃墜する your mortgage is if you can get a 重要な 脚 up on the money you put in.

In this regard, using a 年金 計画／陰謀 really stands out. 年金 出資／貢献s 利益 from 税金 救済 which can 'supercharge' your returns.

Basic 率 税金 救済, for instance, 追加するs 25 per cent to the value of your マリファナ, and for higher 率 taxpayers there is an even larger 上げる.

If you have 接近 to a workplace 年金, your 雇用者 will 支払う／賃金 in too, making it a really cost 効果的な method to save for 退職.

This should be maximised to the greatest extent possible before 投資するing どこかよそで.

Some 投資家s use this 戦略 to help 支払う／賃金 off their mortgage, but you need to 耐える in mind that money in a 年金 can't be 接近d until a 最小限 age is reached.

That's 55 at 現在の for personal 年金 計画／陰謀s, but it is 始める，決める to rise to 57 in 2028.

耐える in mind too that 年金 支配するs, and 税金 救済, can change in the 未来. The longer you have to 投資する the more 有益な the 投資するing 大勝する might be, 特に when it comes to 年金s.?

My 判決: If you are happy taking 危険, 構内／化合物ing 投資 returns over 非常に長い periods and 投資するing as much extra money as possible can be a hugely powerful 軍隊.

That is 供給するd your 投資 戦略 is sound, and you have a long enough 滑走路 ahead to を取り引きする the 必然的な volatility markets throw at you.?

To overpay your mortgage or 投資する? It's not just about the maths...

The answer to this quandary doesn't やむを得ず 嘘（をつく） in a spreadsheet.

Although 投資するing may 生成する higher returns than a 貸付金's 利益／興味 cost, markets also come with the 危険 of losses. That 不確定 is a factor in itself.

The peace of mind of lowering mortgage expenses and not having to worry about the 業績／成果 of 財政上の markets may outweigh the 可能性のある advantages of 投資するing.

If your broader 財政／金融s are in good 形態／調整 ? essentially that you don't have other high 利益／興味 負債s to 支払う／賃金 off and you have built up a 基金 for 緊急s of around six months' 支出 ? both 戦略s can work 井戸／弁護士席.

You can also 分裂（する） the difference and overpay your mortgage and pile more money into your 投資s, ideally 経由で a 年金, at the same time.?

Final checklist: What to consider before you decide

Your age:?The longer you have to 投資する the more 有益な it can be. Younger 投資家s tend to have １０年間s in 前線 of them meaning they can take more 危険 in 追跡 of higher returns.?

However, those looking to （疑いを）晴らす the mortgage in the run up to 退職 don't have as long, so are more likely to err on the 味方する of safety.

Your 職業 status: If you are in a 安全な・保証する 職業 with good prospects for 収入 more money in the 未来, you are likely to be more 確信して in relation to rising mortgage 利益／興味.?

Those in いっそう少なく 安全な・保証する 雇用 or self 雇用 might want to lower the 利益／興味 重荷（を負わせる） and （疑いを）晴らす the 負債 quicker as the 見通し is いっそう少なく 確かな .

Your mortgage 条件 and the 利益／興味 率: Those who have 安全な・保証するd mortgage 率s の近くに to, or below, 現在の 利益／興味 率s a re in a favourable position.?

However, if you are re-mortgaging or moving from a 直す／買収する，八百長をするd to a 基準 variable 率, and therefore 直面するing a sudden jump in 支払い（額）s, now could be an opportune time to 支払う／賃金 off a chunk of 負債 to help make things more manageable.?

The higher 利益／興味 率 on the 負債 代表するs a higher 障害物 for 投資するing that money instead.

If you are on a 直す／買収する，八百長をするd 率: There are often 刑罰，罰則s for 支払う／賃金ing off chunks of a 直す／買収する，八百長をするd 率 mortgage, so check the 条件 carefully.?

Those that have locked into 直す／買収する，八百長をするd 率s at the start of this year, or earlier, have likely 安全な・保証するd a very 競争の激しい 取引，協定 in relation to those 利用できる today, but think about when your 直す／買収する，八百長をする finishes and what you will do at that point, 特に if it is a shorter 称する，呼ぶ／期間／用語 two or three year 取引，協定.

Are you are a 危険 taker or more 危険 averse:?If any 財政上の 決定／判定勝ち（する） means you lose sleep at night with worry then take the 安全な 選択.

Never put yourself in a 攻撃を受けやすい position if you can 避ける it.?

The feeling of having a smaller mortgage and lower 返済s can be 推論する／理由 in itself to 返す 負債, even though in the longer run 投資するing might be more financially rewarding and the 大勝する those? who can afford to take the 危険 choose.

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