boxst

Hello

I am lucky enough to have come into some money and would like to invest it (or pay off a third of my mortgage). Are there companies that will manage it for you for a fee (percentage of the profit?).

Any help appreciated.

Thanks,

Steve

mrtheedge2u2

Fund managers such as JP Morgan etc can actively manage funds, or passively is you choose.

I personally would pay off the mortgage.

boxst

Thank you, I will look at that.

The reason I'm saying invest, is that perhaps in a year or two I can pay off more of the mortgage...

Steve

Brendan Hughes

At the rate the so-called "professionals" have managed my funds over the last 10 years - I'd pay off the mortgage.

NACRO

Another vote for freeing yourself of debt before thinking of investments, particularly in the current credit environment.
Plus as you seem to be thinking short term even a fantastic performing fund is going to leave you out of pocket taking into consideration fees and taxes.

TopBanana

Now might not be the best time to invest, unless you get into something specialised - but then you should really know what you're doing. I'd pay off the mortgage in your position.

Otherwise, you could contact Hargreaves Lansdown. They will invest your money for you, and don't charge a large fee.

ex-webby

I think you either need to pay off the mortgage, or go for something much higher risk = higher potential return.

Mortgage = Safe option
Angel investment / start a small business, or similar = bigger potential for failure, but as you say, in two years you might be able to pay the mortgage off completely.

Your choice, depending on how risk averse you are.

The Snug Rhino

33% of your mortgage? Either your loan is HUGE or you dont have enough to worry about someone managing for you in order to beat interest rates - clear the loan.

stilover

Funnily enough, I'm in the same position. Granny died months ago and left me some money. Was going to pay off my mortgage (Inheritence + saving) but was advised by Financial adviser to Offset Mortgages.

Basically, say you had £40k, and your first though was pay off some of your mortgage. Your repayments are lower and you pay off your mortgage quicker. Your £40k is gone.
Offset mortgage is that you use the £40k to offset interest payment on your mortgage to reduce the term of your mortgage. Say you have 20 years left, you could actually pay it off in 14 years. The best thing is that you still have the £40k at the end of it. You can also add to the pot at any time, and also reduce it if you need some cash.
I'm just taking one out at the Woolich.

Check out Remortgaging - Intelligent Finance for examples.

You can also use it to lower you monthly payment if that suits you better.

Bakerman

Pay off the mortgage, most fund managers charge you for the privilege of managing your money then fail to beat a ftse tracker over the same period. I wouldn't do an offset, pay a lump sum to the mortgage (beware charges in case it is treated as part settlement) and then reduce the term so that you monthly repayments remain as is, usually offsets are more expensive as you have to pay somebody for the product. If you cant pay off 33% in one go then offset maybe the way to go.

pslewis

Pay off the mortgage ... no brainer really.

TopBanana

... or, use it as a deposit on as many buy to let properties as you can

ex-webby

TopBanana

Is that still a good thing? I was starting to think you had to be in that 5 years ago to make any real ground?

exvaux

iTrader: (1)

nah mr webmaster sir,its still good,my parents have bought another each,but that causes another problem,older generation with more disposable income buying up eveything that pushes first time buyers out of the market.

boxst

Thanks for your help. I paid off the mortgage (well, a third of it) in the end.

Steve

Brendan Hughes

Tut tut - and you could have bought Scoobynet!

SetoN

nooobyscooby

Pay off the mortgage. It's a no-brainer.

Robert Rosario

If you have other debts, with higher rate of interest than the mortgage, pay those off first.

Then pay off the mortgage.

If you have no other debts, pay off the mortgage.

J4CKO

iTrader: (1)

Nigerians always seem keen.