Mortgage renewal, have saved up 30k not sure what to do next?

AdventureRocks

Hi,

So these are the details:

10 year fixed mortgage contract which i can get out of penalty free after 5 years which is this year. 
Interest at 3.14% fixed (at the time everyone advised fixing as it looked like the interest rates were going to go up)
Property was £128k 
I have £71,800 left to pay 
Monthly payments very low at £300 spread it across 40 years (now 35 left) while i found my feet with the intention to save aggressive  and pay it off a lot quicker. 

Over the course of 5 year i have saved up £30k , never overpaid as i was keeping it as a safety net for job loss etc.

Should i just find a new deal at a lower % interest rate but pay off an extra £30k so the mortgage would only be on £41,800? And then aggressively save again?

What would the best options be for me here , really unsure what to do.

Can not believe how quick time has gone , insane! 

Any help would be greatly appreciated please!

MovingForwards

How's your pension looking?

AdventureRocks

MovingForwards said:

How's your pension looking?

I have only been putting the minimum 3% in and employer puts in 2% so i doubt it will be great, will have a check !
What was you thinking?

SonOf

AdventureRocks said:

MovingForwards said:

How's your pension looking?

I have only been putting the minimum 3% in and employer puts in 2% so i doubt it will be great, will have a check !
What was you thinking?

Mortgage interest at 3.14%
Pension returns typically around 6% plus tax relief on contributions. 
Overpaying the mortgage is often not the best option. 

Moneyminded

Personally if you choose to pay a lump sum off your mortgage I would make sure you have 3-6 months worth of expenses left in your savings, don't spend it all in case something unexpected happens. 

Socajam

I second having 6 months emergency fund and 6 months life happen fund = 5,000 each = 10,000
Then put 15,000 in pension and 5,000 towards the mortgage.
Since your pension is so low, it makes sense to do something about that.

MovingForwards

SonOf said:

AdventureRocks said:

MovingForwards said:

How's your pension looking?

I have only been putting the minimum 3% in and employer puts in 2% so i doubt it will be great, will have a check !
What was you thinking?

Mortgage interest at 3.14%
Pension returns typically around 6% plus tax relief on contributions. 
Overpaying the mortgage is often not the best option. 

You are really not putting much into your future, I would look into dropping £20k into a pension, maybe your employer allows additional payments?

£10k keep as emergency fund.