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Given high inflation, which is the priority: overpay mortgage, or invest via Stock & Share ISA?
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JF Hector
Posted: 11 August 2022 20:02:32(UTC)
#1

Joined: 11/08/2022(UTC)
Posts: 1
Hello everyone!

This is my first message here.

I have some cash sleeping in a saving account and losing value with inflation.

My wife and I have taken a mortgage last year. We have a low fixed rate for 4 years but I imagine that inflation will be high still in 4 years when we remortgage. I imagine that, because of inflation, interest rates will still be high (maybe 5-7%) for a few years when we remortgage.

I'm trying to decide whether to my sleeping cash to:
- OPTION A: Overpay my mortgage (I can pay 10% of the initial amount each year)
- OPTION B: Put that money in a Stock & Share ISA (to avoid tax on gains) and invest it in a wide range of stocks and bonds (using an index-tracking Exchange Traded Fund).

Does one of those two options seem obviously better to you?
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