Private Pensions vs Overpaying mortgage

kidmugsy

RJDidier wrote: »

Thanks to everyone who has contributed so far.

LTV when I took it out was 80%. What I've taken away from the above so far (as well as my own thoughts):

- Focus on building up an emergency fund
- Continue overpaying on mortgage for next 18 months, possibly allowing improved interest rate (via lower LTV) when re-mortgage
- In 18 months, try and start contributing to private pension

Yes, yes, no. I'd hang back on the pension. Why not wait until later in your career when you will be higher rate taxpayer, so that pension contributions will be more tax efficient? Or wait to see whether a government really does replace 20%/40% tax rebates by a uniform 30%? Pension contributions now will be inflexible for more than thirty years: that's OK with the DB pension, where the employer promises justify the inflexibility, but premature for your own money.