mortgage before anything else? 24 February 2014 at 8:13PM in Mortgage-free wannabe 1 reply 389 views

chrishar

It makes sense to me, if you have a mortgage, the idea of paying this off as soon as possible. Instead of using the money for other things such as ISA or pensions.

Is this the way anyone else thinks or should you be putting your money in various investments, instead of overpaying the mortgage?

Lois_E

You need enough in an emergency fund to cope with, well, emergencies, depending on how secure your job is, and what kind of responsibilities you have.

You need to consider the tax advantages of pensions, and whatever is available in terms of getting your employer to contribute on top of your own contributions. Those of us in public sector jobs who are eligible for defined benefit pensions would be insane not to take advantage of them.

Beyond that, the mortgage is the next most important thing, IMO, or offset savings, or whatever makes sense in terms of the interest rate on the mortgage and the best rates available on the savings, taking into account what tax rate you will pay on the savings interest.