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  • 5year Mortgage agreement on house is ending in March another 24 on it. Sadly gf’s mum died last year which could put us in a unwanted but position to pay off the mortgage. Is there any reason to not pay it off completely? I know things like credit is I think set on having debt,but feel something sad could in some way be positive.

  • From a credit risk perspective, paying it off would mean that you were a much safer bet for lenders.

    From a credit score perspective, i.e. how much money lenders could make from lending to you, that's a bit more here or there.

    Also worth noting that, since 1997, the house price index had gone up by a multiple of 4.5, the FTSE 100 has gone up by 43% (peaking at 49% in 2017), and the FTSE All-Share by 74% (peaking at 175% in 2017).

    Of course, you may be a shit-hot active investor, able to pick the top & bottom of the market, and spot unicorns before everyone else. In which case, the crypto markets are waiting, forget the house.

  • Isn’t the “property vs shares” comparison irrelevant though - as if you have title to the property, you already have the exposure to housing market (regardless of whether you are mortgaged or not)?

  • Also worth noting that, since 1997, the house price index had gone up by a multiple of 4.5, the FTSE 100 has gone up by 43% (peaking at 49% in 2017)

    Difference isn't so stark if you include dividends (the blue line), although obviously by living in the house you get the imputed rent. You might also say that stock markets have factored in the current macro news whereas house prices lag

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