Mortgage Overpayment v Savings

dtec001

Hi All,

Im looking for a bit of advice please. I have just over 14 years left on my mortgage and I am 50 now. I would love to be mortgage free, however, i also feel the need to save for retirement and/or a rainy day.

So, my question is, as i have had a pay rise recently, I have more disposable income now. Should i use it to make monthly overpayments on my mortgage or should I put the money in a monthly savings account?

AnotherJoe

... or should you put it in your pension? How much are your currently putting in that?

Impossible to hazard an opinion which of the 3 is best, without numbers.

getmore4less

reducing debt is part of retirement/rainy day planning.

What rate is the mortgage?

MyOnlyPost

Usually if you can get a higher rate to save than the rate on your mortgage then you save. This may be from interest rates or it may be from tax relief on pension contributions. Without knowing more about your retirement provision it is impossible to give a definitive answer