Reasons not to pay off your mortgage

Invest in Housing

In the past few decades buying houses has proved a very good investment. The buy to let sector offers good opportunities for capital gains and income from renting. Although, there are concerns about the short term prospects of UK house prices. In the long term, housing is likely to provide a good investment. There is still a fundamental shortage of housing. High house prices, are to a large extent a reflection of economic fundamentals. Therefore, don’t worry about paying off your mortgage if you are going to invest in buying other houses.

Other Debts to Pay Off

If you have other debts such as credit cards and personal loans, the interest rate on these will be higher. Therefore, your highest priority should be to pay off these debts before worrying about your mortgage.

Income is Expected To Increase

If your income is expected to increase in the future, then it is best to not worry about paying off your mortgage.

Invest in Pensions

Putting money into a private pension gets a tax rebate from the government. Therefore, it is best to take advantage of this before making extra payments.

Enjoy life

Life is to be enjoyed when you are young. Don’t spend all your adult life working hard just to provide an early retirement. Give yourself the freedom to enjoy life when you are young.

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