Mortgage or Pension

I am paying extra on my mortgage by doing this will finish by September 2020. But I am thinking stop paying extra that would be about £800.00 per month and putting in the £800.00 plus more funds into my pension pot.
The reason this would take my income below 40% income tax freshhold keeping me under £463500.00 every pound abover that figure 0.40p goes to the Tax man.

Pay off the mortgage fist then put into pension or cancel extra payments to mortgage put in to pension, my mortgage would end then summer 2021. Thanks for any help John.


  • tacpot12tacpot12 Forumite
    6.1K Posts
    Fifth Anniversary 1,000 Posts Name Dropper
    In your case, paying more into your pension will save you more than repaying early.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • miss_undastoodmiss_undastood Forumite
    223 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    How much extra interest would you pay for the extra years mortgage vs how much do you save in tax?

    40% of £800 is £320 * 12m = £3,840 in tax saved.

    I think that will be more saved than you’d pay in interest so a no brainier?
    Part time working mum of 2 terrors trying to build financial freedom.

    Residential Mortgages @ Oct 2020: £308,283
    @Jul 2021 £286,600
    MFW-21 #20
    MFIT-T5 #46
  • Happier_MeHappier_Me Forumite
    563 Posts
    In your case, pension first because of the tax savings.
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