Overpay mortgage or other investment?

adonis10

adonis10 wrote: »

It's that time of year again and I'm back for advice!


Financial situation has changed for the worse this year as we are getting married in August so I have saved next to nothing and had to dip into my savings considerably.


Updated finances:


£49k in cash and ISA's
£36k workplace pension
£34k salary




£136k mortgage (on a £360k house)
£2.5k interest free credit card (another 20 months to pay off so not a pressing concern).
£12k student loan


No great changes in the past year other than a horrible dip in cash savings and the credit card debt so my only question is do you think it is worth upping my workplace pension contributions? Currently contribute 16% and considering going up to 20% which would be an extra £113/month into the pot for a cost of only £67 net pay. The increase won't change my employer conts (max is 16%) but I am going along the lines of contributing the same percentage as my age (36 next month) in a vain attempt to catch up.


The only other change of note is that my fiance changed jobs and halved her salary which is a blow, but doesn't affect our ability to pay the bills and me to have £500/month left over once the wedding is out of the way. However, this means she is no longer in the Teacher's pension scheme and cannot save a penny after bills, hence my desperation to squirrel away as much as possible into a pension.


Any advice (other than 'get higher paying jobs'!!) appreciated.

Any more advice before my window closes?!

justme111

Do not worry

Thrugelmir

adonis10 wrote: »

True, but I am willing to take the risk that the extra tenner/month into the pension will grow more than the 1.75% interest it will incur on the loan.

Your tenner might end being worth less.

adonis10

justme111 wrote: »

Do not worry

Easier said than done, really would rather not be scraping the pennies when I am 70!

adonis10

Bit the bullet and went for a minor 2% increase to 18% (34% total). Won't cost much and every little helps etc.