Leave in cash ISA or overpay mortgage

atush

paulcalf wrote: »

Atush

My pension pot is !!!! poor.
My plan is to pay off this house ASAP, then start saving money in whatever is the best option, possibly another house that i could use as future pension income.
Thanks

Paul

Then it is clear, you need to pay more into a pension than you do to overpay your mtg.

With tax relief you will do better than overpaying mtg, with employer contribs as well you will do FAR better.\

A btl does not a pension make. It is something you do After you have a pension as well.

paulcalf_2

The budget says from July people can pay £15,000 into an isa per year, so this makes it easier for me to re establish a tax free savings pot in the future.

paulcalf_2

Atush: I agree I need a better pension.
I'm self employed so there won't be any employer contributions and tax relief won't be that significant at the moment.

Everyone: Thanks very much for help and suggestions

So plan is remove 20K from ISA.
Pay it off mortgage to minimise annual interest paid.
Keep term at 8 years, but continue to overpay (to further minimise interest), giving me flexibility if i need access to cash in future.
When able start to build up tax free ISA pot (Stocks & shares or cash or combo).
Decide if a 2nd house or money into a pension is best use of any further spare cash.

Congratulate myself on having already massively reduced the term of my mortgage.

Congratulate myself on being 'practically' mortgage free whilst 40, once I do the overpayment.:)

atush wrote: »

Then it is clear, you need to pay more into a pension than you do to overpay your mtg.

With tax relief you will do better than overpaying mtg, with employer contribs as well you will do FAR better.\

A btl does not a pension make. It is something you do After you have a pension as well.