35k savings 40K left in mortgage.

madvicker

Nothing more to add really. If you want to go debt free in the shortest possible time, then that is the way to do it.

You could make your money work better using the low interest charges of the mortgage and advantages of pensions and whatnot to improve your financial status overall too. But I get that the psychological impact of debt makes that difficult - I'm very familiar with that feeling, all my debt is at 0% at the moment but I'm desperately trying to pay it off as fast as I can rather than use the interest free periods to make money elsewhere. It weighs too heavily on my mind....

Thrugelmir

Your options are really determined by what your lender has to offer nearer the time. Much could potentially happen in the coming months. Before you are able to make a choice.

Rossboy

Madvicker- yes i agree about making it work better it is possible with savings accounts an pensions however yes its always in my mind so would rather pay it off. Interest rates could also raise a lot and therefor even out with ISAs and things to. plus i would rather have extra money available at a younger age to enjoy than benefit slightly more when older out of a pension, but that doesnt mean i wont still invest into that because i will.

AnotherJoe

Rossboy wrote: »

Madvicker- yes i agree about making it work better it is possible with savings accounts an pensions however yes its always in my mind so would rather pay it off. Interest rates could also raise a lot and therefor even out with ISAs and things to. plus i would rather have extra money available at a younger age to enjoy than benefit slightly more when older out of a pension, but that doesnt mean i wont still invest into that because i will.

There is close to zero chance interest rates will rise so much that paying the mortgage off will be a better deal than a pension. If you are a high rate taxpayer (and i dont know if you are) you might as well set fire to money in the street than prioritise mortgage over pension. If you arent, then its still, with todays low mortgage rates pretty much the same as inflation or even less, financially its a very counterproductive way to "invest" your money.



And whilst the mortgage may always be on your mind, it will be paid off anyway, whereas if the pension isn't on your mind, then whats making you contribute to it? It doesnt sound as if it is?



A pension is nothing much different to a reverse mortgage, instead of paying off say a £200k mortgage you are trying to accumulate £200k (or whatever) for your future self. The difference being if you do nothing special the mortgage will wither away and be cleared anyway. Whereas you have to do something special for your pension to build up to a meaningful amount and most dont, paying in the minimum.



Theres a whole forum full of deluded folks on here proudly boasting about overpaying their mortgage instead of their pension and when they retire some will literally be multiple tens of thousands of pounds worse off.


Anyway, my rant is over, good luck to you whatever you do.

Rossboy

AnotherJoe- i have never really thought about it like that and it makes 100% sense to be honest, the way you explain it as-well yes i would be burning money technically as my Interest rate is low due to my LTV. I mean i work out i would save about 4-5k on interest paying the lump sum.

I dont make over 40k a year so not high tax payer but i get options to work abroad then i could double my money so last two yeats i have been higher tax bracket.

Im only 29, the word pension still doesnt sound right to me yet haha. I just feel being youngish, mortgage free, a lot more disposable income and flexability with what you want to do with it. One month holiday fund , next month pension fund. Could still be funding a big pension every year with the options. Does high % pensions only work with big number payments? You have opened my mind to think about how to go about this. So thanks for your imput.