Pay off mortgage or invest?

thriftalissimo

Thanks to all who offered advice to my first post, cheers guys

atush

And apart from emergency cash, you do need more into pensions. So I would start saving more than the 1% currently.

Spidernick

I assume you have no Capital Gains Tax to pay on the house sale? If you do, remember to factor that in to what you're doing (which easy access accounts will of course do).

gkerr4

you aren't going to out-perform our mortgage interest in an area where you retain "Quick access" - if you had £20k "kicking about" and were asking the question i'd consider investing as i think its easy to outperform mortgage rates.

also - i agree with atush - being "new" to pensions at 42 should be a worry for you - and only paying 1% is a massive worry.
you should immediately increase your pension contribution to (at least) the highest amount your employer will match the contribution - otherwise you are throwing away free money.

kidmugsy

If your employer would match your pension contribution above 1%, you would be wise to contribute more; otherwise don't. Just keep the cash available on instant access. If you can bear to fanny around with different current accounts, you can get 5% p.a. at Nationwide and TSB on part of your capital, and 4% at Lloyds.