#11



Just as an aside have you taken into account tax nationally, insurance and potential capital gains tax on the share scheme in your company ?
Originally posted by Suzuka96


If the OP has to pay CGT on their shares, then that means that they made the wise choice because they rose multiple times far more than expected, given they are currently looking ata £4K gain which is well under.



Seems to me the shares are by far the better option since paying off more and so incurring an ERC is a losing proposition whereas buying the shares is a heads you win tails you don't lose, bet.



Many people here are obsessed with paying down mortgages at all costs, such as here where it makes no financial sense or where they pay off a 1%mortage rather than save at 3% or pay off mortage whilst ignoring high tax rate savings into a pension.

#12
Can someone explain why paying the 5% charge on 50k to bring my full balance down from 110k to 60k and only pay 2.94% interest on new balance is a bad thing.

Please tell me if I'm wrong in this calculation.



50k costs £2500 + 60k costs £1764 interest this year

49k £1609 next year etc... 2 years interest + 5% charge = £5873



110k costs £3234 interest this year

100k £2940 interest next year etc.... 2 years interest = £6174

#13



Can someone explain why paying the 5% charge on 50k to bring my full balance down from 110k to 60k and only pay 2.94% interest on new balance is a bad thing.

Please tell me if I'm wrong in this calculation.



50k costs £2500 + 60k costs £1764 interest this year

49k £1609 next year etc... 2 years interest + 5% charge = £5873



110k costs £3234 interest this year

100k £2940 interest next year etc.... 2 years interest = £6174
Originally posted by Chami


In the second example you are not including what you could EARN from the £50k that you haven't put into the mortgage.



the share options are a no brainier, put cash into them.



(I was lucky on 2 lots of mine, I put £9k in each and each was worth £20k by the time I got them.)

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