Mortgage free by 33

ConfusedNHSEmployee

With 0 help from the bank of mom and dad I find myself about to be mortgage free by 33. myself and the hubby bought our house 5 years ago for 155K with 15% deposit, our mortgage payment is ~£650 and we overpay £1700 to £1900 a month. We went with first direct so we don't incur a penalty for overpayments beyond 10% and we anticipate we will be mortgage free in 2020 when I am 33.
I have recently been successful in securing a new job which will provide additional income of ~£1000 a month after taxes. Other than the house we have no debt and I was just wondering if it would be wise to use the extra money to pay off the house even sooner or if I should start thinking about long-term investment/ putting more into pension?

Thanks.

H.

Moneyfordreams

Don't know the best answer for that... however you have done amazingly well so for I would go with your gut. :T:T:T

Are you already in NHS pension? If I was in your position with a pension, I would continue what you have been doing, but without a pension, I would consider redirecting some to get a good start.

I'm in NHS pension, but with the new rules I'm 2 years too young to stay in the old pension and have been put in newer one much to my disgust. I will be choosing to add to other financial avenues when I have the mortgage under control

ConfusedNHSEmployee

Thank you, I am unfortunately leaving the NHS pension on mid band 8a to start a new job with private for almost double the salary. I am on the 2015 scheme as well which isn't as good as the previous one albeit fairer.

Retter

You already have a pension pot and I assume that you will continue contributing with your new employer. If I were you I!!!8217;d hammer the mortgage and get rid of it. At 33 you will be plenty young enough to think about investments or even another property to achieve your future goals.

ConfusedNHSEmployee

Yes i will have a new pension with the new job, though i would only contribute 8% compared to the 9.3% with the NHS but on a much higher salary.

I was looking at savings accounts and the best I can possibly get is 5% which feels like peanuts in the grand scheme of things but then there isn't a better alternative.

greent

You're looking at being mf in 2 years time anyway. I'd seriously consider whacking into a pension and getting tax relief, esp if you've gone into higher rate tax band.

ConfusedNHSEmployee

greent wrote: »

You're looking at being mf in 2 years time anyway. I'd seriously consider whacking into a pension and getting tax relief, esp if you've gone into higher rate tax band.

I will be in the higher tax rate with circa 80K annual income. Would I need to do that in a private pension or contrbute more into the new job pension before tax deduction? Not sure what is possible.