Almost Mortgage free at 35

kanye1

Hello all,
Im currently in a position where I will be able to reduce my mortgage to under 10k in the next 2 months.  This will require a reasonable overpayment circa 45k  ( no overcharges).  Mortgage rate is 1.8%.
Married, no kids yet.
No other debt.
I have enough saved, as expenses for 6 months plus after overpayment.  Savings rates are lower than mortgage 1.3%.
I am maxing my pension c74k.
I know I could earn more investing elsewhere in the medium to long term. 
My question is what would you do in my position, reduce/ clear the mortgage or look to invest the money elsewhere?  
I am leaning towards overpaying but want to hear other peoples experience who have been through this?

longway2go

I think for me the idea of having such a low mortgage would be great so if I didn't have any penalties I personally would OP it but thats not to say that's the best thing money wise or best for you

inigma

Pay off the mortgage, if you find yourself missing it then take out another mortgage.

edinburgher

Do you mean to say your pension is worth £74k? I ask as pension tax relief is capped at £40k.

badmemory

The next couple of years could well be challenging.  So have some savings, enough for a few months bills (which you already have), pay off the mortgage & nothing can harm you.  I know a lot say pay into pension etc, but I also know the complete relief that comes with being able to say that no-one can take the roof from over your head.  Mostly it depends on how you look at things.

kanye1

edinburgher said:

Do you mean to say your pension is worth £74k? I ask as pension tax relief is capped at £40k.

Yes it is currently worth 74k

Moneyminded

I would pay off my mortgage if I were in your shoes. You have 6 months worth of expenses saved in an emergency fund, no other debt and you are already contributing to a pension fund. You are doing great! 

kanye1

Many thanks everyone 

kanye1

I remember posting here when i was going to buy very helpful