Mortgage free wannabe, or pension?

Since you are mostly mortgage-free wannabes round here it may not be the place to ask but, here's my dilemma. I'd value opinions from you sensible people :)

I started with a mortgage of £220k in 2005. It's now down to £50k as I've been paying off as much as possible generally, had an offset mortgage for a while which helped, and absolutely couldn't bear the feeling that I don't own my house outright.

Now that I've got the mortgage down to a less threatening level and I own a lot more of my house than the bank does, I've been concentrating more on building up my pension. I'm a higher rate tax payer so this seems to make sense. Even so, I still feel the mortgage-free itch. I amuse myself about once a day playing with overpayment calculators (yes, I know, I probably need to get out more).

something else to consider: my fixed rate deal is up in two years and I don't especially look forward to dealing with brokers or the hassle of remortgaging again especially when the value of the loan will be around £30k by then. I guess I could take out another offset then.

Anyone have any thoughts to share?


  • datlexdatlex Forumite
    2.2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    I am doing both. I pay more than the minimum payments to my pension. I also over pay on my mortgage. Not huge sums for either. But they do say every little helps.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • shangaijimmyshangaijimmy Forumite
    3.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    Similar ploy as well in that we tackle both. For the last 4 yrs we've been quite aggressive on mortgage op's to get it down to an 'acceptable level'. We're now nudging focus towards retirement to take advantage of the mortgage interest rate being locked in at 1.99% for 5 years. For the next 5yrs we'll pay about 2/3's of extra cash to mortgage and 1/3 towards retirement plans. That should then take us to about £25k left.
    MFW: Was: £136,000.......Now: £61,892.24......
    Mortgage Neutral Deficit: £43,082.90... Mortgage Neutral Savings: £18,809.34
    MFiT-T6 #13 - £3,517 of £15,500 (22.69%)
    1% Mortgage Challenge 2022 - £157.59 of £650
  • lassfarfromhomelassfarfromhome Forumite
    101 Posts
    Fourth Anniversary 10 Posts
    Thanks both for your replies. I'm pretty sure I'll also do a bit of both over the next couple of years and see where I get to then. The tax relief on pension contributions makes it hard to resist, but I LOVE seeing the amount outstanding on the mortgage reduce.
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