If you had Β£500 left over every money after paying off your mortgage repayments and bills, would you overpay on your mortgage or invest the savings in index funds?
I appreciate this is a student forum but Iβm sure you all have interesting ideas.
For context: there is 24 years left on the mortgage term. Debt remaining is Β£102k. The house is currently worth Β£150-Β£155k (so there is around Β£50k equity in the house). The interest rate is 3.5%.
If you overpaid the mortgage by say Β£500 a month, and perhaps paid the odd lump sum payment in to, you could pay off the mortgage in 7 years and save Β£32-Β£38k in interest payments.
Or instead would you put the Β£500 in a variety of index funds on the stock market? In the long term, index funds have always outperformed the market.
Or would you do something else with the money, if so what?