The average UK mortgage is ยฃ200,000
At 4.5% over 25 years, you'll pay ยฃ133,000 in interest on top of repaying the loan
People see that number and immediately want to overpay the mortgage
However, here's the interesting part
If you invested the equivalent of a ยฃ100 monthly overpayment into the S&P 500 $VOO instead
10% annual returns over 25 years
ยฃ132,000
A ยฃ200 monthly investment becomes
ยฃ265,000
A ยฃ300 monthly investment becomes
ยฃ397,000
That's why personal finance isn't about finding the correct answer
It's about understanding the trade-offs
Some people prefer the certainty of a mortgage-free home and I get that
Others prefer the potential of a larger investment portfolio
Neither is automatically right
The important thing is understanding the numbers before making the decision
Millions of people never run the maths
Probably the best advert for football & beer in the world: recorded in Dagenham in 2005 this is the Carlsberg Old Lions advert including the talents of Alan Ball, Peter Beardsley, Terry Butcher, Bobby Charlton, Jack Charlton, Stuart Pearce, Peter Reid, Bryan Robson, Peter Shilton, Chris Waddle, and Des Walker, with Sir Bobby Robson as manager.
@BasilTheGreat The Council of the City of York appear to have amended the Coat of Arms of York top left hand corner by greying out that little beauty as well. So here we are in full colour.