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Learning, Sharing, and Teaching => Investor Alley => Topic started by: TerryEngland on April 07, 2015, 04:28:03 AM

Title: Mortgage or P2P lending?
Post by: TerryEngland on April 07, 2015, 04:28:03 AM
Hi all, just joined the forum. I am wondering what peoples' opinions are in terms of investing some money. For the past few years I have been able to make some overpayments on the mortgage and also started some small scale p2p lending (as an alternative to a savings account). I have been cutting costs (used to spend far too much on food for example).

I have about 2000 which I can make use of (this is over and above my emergency savings), with the options I can think of being:

1) Make a 2000 overpayment to the mortgage (I can overpay by up to 8000 per annum without penalties). The mortgage is on a fixed rate of 3.44% until 2017.

2) Place the 2000 in p2p lending (such as RateSetter and Zopa), I can currently attain 4-5% on this after fees etc. I also have the option of getting a 6% return from a community-based company that is putting solar panels on schools, community building. Investors are given a 6% return for 20 years.

3) Get a low-power motor bike (125cc) to replace some of my car commute with a lower-fuel consuming bike (my work commute is about 22 miles each way).

What do people think?