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andyfallsoff
Got you.
When you pay off the mortgage, though, you are freeing up the mortgage payments, which you can then invest.
[Edit]
Ignore this - double counted a column!
Worked example time!
£1000 boomer mortgage that you either pay off now, or pay each year at 5%
Your house increases in value at ~6.85% pa (based on historical growth).
Investments grow at 6.16% (based on historical growth for allshare accumulation index)
You earn, conveniently, the same amount that your mortgage costs. And you either spend that on investments each year, or on your mortgage.
Paying off your mortgage now gives you a combined wealth of 8.8k, versus 5.7k if you invest in a lump and pay your mortgage off over time.
In this example, it's only when you have super low mortgage rates that it's better to invest. With rates of 1.55% and below, you end up with a higher overall worth if you invest everything and leave the mortgage alone.
Edit]
Ignore this - double counted a column!