Why overpay mortgage while interest rates are so low?

Ive been making regular overpayments for e few years since 2012 thinking rates would rise at some point of my latest mortgage 2009.

Times in fiancial terms are different, though at least I have some security in overpayment reserve already reduced balance and saved some interest.

overpaymrents I find are easier than saving though thats my thinking not everyones.

Think I'll need to stop them as I moved to part time shifts though I'' prob continue with much smaller overpayments-£10-25 p/month.

genieuk wrote: »

For me not having worked all my life due to living overseas and following husbands career, I feel happier paying off the mortgage and saving £40K+ in interest. OH is the main breadwinner if he fell ill or lost his job at least our home would be safe.
My view my change next month as we are having a pension brief at work I did toy with the idea of making additional contributions but was already on the road to being mf.

I am 32 (almost 33).

My pension (according to SL) has had £40k of investment growth in the last 8 years (since I started it). Plus a third of the rest is tax relief and a bit over a quarter is employers contribution.

Just some numbers to compare to yours.

There was an interesting thread on the Pensions board about calculating the number i.e. the target income you would require when retired. I think it is an very individual decision what works best for you.


If your pension income is likely to be lower than you really want then I can see a value in prioritising your pension over overpaying. On the other hand if your pension is likely to be sufficient but you will have to delay retirement because of the outstanding mortgage then prioritising overpaying would be better.


I think the decision has to be made as part of a wider life / lifestyle plan. I am in my 40's I have a fairly decent pension pot building up and income from BTL which should get us beyond our minimum income requirement. So for me the priority is paying off the mortgage so I have some time to build up funds to help the children and to bridge to pension dates if I want to leave work before my pension is available.

rasputin_thorpedo wrote: »

1) I am on my own, so I want the security of owning a home - more short term security than guaranteeing a pension (mum and dad will die and leave a pension pot to me eventually, even if they fall ill etc)


2) Feels good


3) Interest rates - well, you never know - they might rocket. I doubt they can go much lower as they are circa 1.5%, so an increase is inevitable really in the mid-long term. I would rather have no mortgage than remortgage 5 years 11 months and counting

Surely your parents will use their pension in their retirement and not leave their pension pot to you. You cannot possibly predict their future and their possible care needs.