Mortgage free soon, then what?

rpclarke

On 30th Nov, this year, my 5 year fixed rate deal of 1.14% runs out on my current mortgage deal. The balance will be £24,400. The payment has been £822 a month.

We have also been putting aside around £1200 a month into premium bonds that we've used for the annual 10% overpayment. This has also been building nicely and we will be in a position to pay off the balance in full come Dec 1st!!!!! (Very excited)

So my question is ......

Firstly, would you pay it off with the money we've saved up? Or could that money be better off invested somewhere and a new small deal taken out for the mortgage? (But ideally want to be mortgage free!!!)

Secondly, we are now going to have £2000 a month to play with. We're both early 50s, kids are working and both have a good pension coming in 10 years.

Our plan is to spend and enjoy £1500 a month on the usual more hols, new garden car etc but we do want to put £500 a month into something for 10years as an extra little pension pot.

Anybody suggestions out there? Many thanks for any advice.

Sam_666

In my view, paying off mortgage 10y before retirement is just bad idea. It will make you feel good, but moneywise poorer.
You need to post more specific info before anyone can give you meaningful answer.

Are you stopping work in 10y time?
Are you both maxing your work pensions, if both still working?
"we do want to put £500 a month into something for 10years as an extra little pension pot." So, what is stopping you putting that in pension now?
How risk averse are you to investment in market, like in S&S ISA?

You would get better responses/comments in savings&investment forum.

rpclarke

Thanks for reply. Yes both of pension pots are being maxed.

Willing to be medium/high risk with the £500.

I'll repost in S&E forum with the additional info. Thanks