Pension or Mortgage?

AnotherJoe

atush wrote: »

Dont over pay a mtg over pension, dont use BTL instead of a pension.

^^^^^^^^^^^ both of these !

you are throwing away money with the former and a hostage to bad tenants and increasingly onerous legislation with the latter.

crv1963

atush wrote: »

Bad move. BTL is highly taxed both on income and captial plus fees and the troubles that come with letting.

Dont over pay a mtg over pension, dont use BTL instead of a pension.

Logic says don't overpay mtg over pension but there is a big pull psychologically for security for most, hence many overpay mtg instead of a pension the trick I think is to try to get a balance between both. The need for security runs very deep and emotion trumps logic as it's human nature.

atush

That is called emotional investing, and is a poor choice.

Use logic instead.

MK62

Often easier said than done though Mr Spock.....

atush

It is not so hard really. Pull up your big boy pants

dunstonh

If it makes you feel any better, I overpaid the mortgage, maxed my ISAs and paid more into the pension. I did a bit of everything. Financially, maxing the pensions would have been the best option.

However, thanks to overpaying the mortgage, we can now buy a new house that would have been out of our range had I not done so. That was not a plan. It just happened.

it isnt just about what is best financially. It is important but you have to consider things you may be doing in future.