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Thanks for the reply, this is all way over my head to be honest... might talk to my mortgage guy because he has experience in explaining things to idiots.
Think our LTV is somewhere around 45%, maybe, the extra money could make it 55% or something in our favour, but then we couldn't blend the boundaries between the outside and the in, or some shit...
chrisbmx116-
Thanks for the reply, this is all way over my head to be honest...
Basically, if you are fricken lazy, chuck it at your mortgage, assuming it doesn't trigger early repayment fees. You can't lose. You don't really win either. But there we go.
If you aren't fricken lazy, and like a little risk in your life, invest it. The return you get should beat the small but fo' sure return you'd get by paying down cheapo house debt.
Howard
Without knowing what the lumpsum is in relation to 35% its hard to give an accurate answer.
Given the uncertainty this is the safest strategy.
The advantages of overpaying are 1) guaranteed gain from long term interest savings, and 2) improving LTV for future remortgage.
You can work out 1) and decide if that is a better return vs savings, ISAs etc.
If the lumpsum is big enough to move your LTV into another category then it maybe worth considering. If it isn't then its irrelevant.
A bigger factor tho is I'm assuming the bulk of you and your partner's net worth is in UK property. If this is the case a large overpayment will further reduce any diversification you have. Generally diversification results in the best performance long term as it reduces losses.