Pay off Mortgage or invest the money elsewhere

Some interesting and informative replies to this thread, but surely the fundamental aim for anyone as they get older is to be debt free.
For me, paying off your mortgage if you can is a no brainier. To own the roof over head outright is a wonderful feeling, and allows you to approach your autumn yrs with peace of mind and options galore.

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Originally Posted by Kris

I don't know about Zopa, but Funding Circle have the companies pay you monthly.

So, every day, my account goes up as companies pay me what they owe for that month plus their interest payment.

When the account hits £20 - I can lend money to a new company. Alternatively, I can buy someone else's loan that they want to sell.

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thanks for the reply, i sometimes have a bit of cash floating around, this must be better than spending it on another crap gadget on ebay and it ending up in the drawer for 6 months and then off'ed to the charity shop

can i ask, why only 20 quid each ? ? ?

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Originally Posted by blue matt

just had a quick read of zopa

interesting stuff and not a bad return, i guess most loans are 5 years ? ? ? so you will not see a return till then ? ? ? or do they replay a % monthly / annually ? ? ?

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You get repaid in little chunks, loans are 2-5 years mostly. So each month you get a capital repayment and interest amount.

As with funding circle the repayments are put back into another loan when it reaches £10/20. It's £10/20 to spread the risk out amongst as many people as possible. So you have some loans for A+ credit score at 3%, 7% all the way up to 25% for people with E credit score. Averages out at 10%. Though the advertised rate is 7% to take into account potential defaults.

You can sell your loan for a 1% charge if you need to get the money out, but the loan has to be purchased by someone so it's not an instant withdrawal.

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Originally Posted by Barry Dragon

You get repaid in little chunks, loans are 2-5 years mostly. So each month you get a capital repayment and interest amount.

As with funding circle the repayments are put back into another loan when it reaches £10/20. It's £10/20 to spread the risk out amongst as many people as possible. So you have some loans for A+ credit score at 3%, 7% all the way up to 25% for people with E credit score. Averages out at 10%. Though the advertised rate is 7% to take into account potential defaults.

You can sell your loan for a 1% charge if you need to get the money out, but the loan has to be purchased by someone so it's not an instant withdrawal.

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so what you are saying basically is that if i want to make a lot of money quikly then i would be better off robbing the asian shop on the corner?