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What amount of investment would i need to save 拢115,365 over 10 years to pay off a mortgage? |
i am looking into an interest only mortgage and want to understand the tax benefits. I also want to know what amount i need to invest each month to be able to pay the outstanding debt off after the 10 year term There are some tax implications here. If you saved money each month for 10 years and then paid off the mortgage you would need to save about 拢800 pcm based on 4% interest rates from a savings account. However you will have to pay tax on the interest received. Assuming you get 3% net interest paid annually then you would need to save about 拢840 pcm to accumulate over 拢115,000 in 10 years. There are some tax efficient schemes to consider. For example you could put 拢3000 each year into a mini cash ISA, a savings account exempt from tax. You could also consider some medium term alternative investments to get a higher interest rate/return but there is some risk .... for this advice you should speak with an independent financial advisor (IFA). Hope this helps Good luck there are no tax benefits of a mortgage 拢116,000/say 5%=you will need 拢2,320,000 initially |
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