Mortgage deposit or pension?

lydriver

I'm 34, FTB
would there ever be any advantage of putting down less of a deposit on a mortgage and using the cash for something pension related?
or would it always be better to use all the cash for a deposit so you don't need to borrow as much

Luckyinlife

Depends on numbers

personally i would put as much into the house to help get to mortgage freedom asap then chuck more into the pension later on :]

edinburgher

then chuck more into the pension later on :]

This is often the wrong approach. Starting early is the way to go

It's an odd question tho, don't think I've ever seen it asked before.

Too many factors to consider, OP really needs to provide some sample numbers before anyone could comment (i.e. likely mortgage size, expected LTV, current pension provision, tax band)

lydriver

yeah, prob quite a rare situation....

LTV between 50-60%
Mortgage would be over 10-15 years depending how much I need
No pension at all just now apart from the automatic enrollment thing for the past 8 months, ie nothing
25k a year, no chance of promotion etc.

edinburgher

You are right to be concerned.

Speak to a mortgage broker and get the best rate you can for your circumstances, prioritise investing in a personal pension/SIPP over mortgage OPs, consider taking a longer term, doesn't sound like you're borrowing much.

One rule of thumb is that you should be investing half your age in years as a % for the future. These maxims are sometimes a bit OTT, probably not in your case.