Which of the individual circumstances should be regarded in the negotiation of mortgage repayment and investment decision? 5

Very good analysis indeed! I particularly like your comment in the last part about zooming-out to really look at the total risks the investor is willing to expose himself/herself to, namely job security, health condition, personal stress during the periods of market fall, especially when they are prolonged periods of time.

Excellent content again James. I personally use a repayment mortgage but I save extra in my pension & LISA to have the option to pay off the mortgage early in the future.

The best bit for me was understanding the risk in other parts of one’s life. I have chosen to be aggressive with my career & investing (100% stocks & lev BTL). Perhaps I need to consider a slightly more conservative approach in one of them. Thanks again, these comments make a huge difference to our collective decision making process.

Very interesting to read from a US point of view, mostly because in my head I needed to keep translating the UK investment and retirement terms to American equivalents. Also, the mortgage options can differ, especially with the ability to fix rates for longer terms in the US. In the end, an excellent analysis and I completely agree with the conclusion that it is important to consider not only your risk tolerance but also how you will behave. I like to imagine that I have a high risk tolerance, but when I had some spare cash I would find myself paying down my 'sure thing' mortgage rather than adding to my investment pile.

I know you are limited by the debt of the property he owns but this really shows how he exposes himself with leveraging the property he lives in. Split the property into two with the same level of debt but the second is a property to let suddenly market crashes loses much impact since it won't change his base for the worse just the prospective gains or losses.

Really shows the benefit of making deals on a secure base.