OP mortgage or put money elsewhere

Escapar2020
Escapar2020 Posts: 136 Forumite
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in Pensions, annuities & retirement planning
Hi all

Retirement feels a very long way off, but I've been thinking about my financial planning so I can improve my worklife balance, possibly achieve early or semi retirememt sooner rather than later. I've got a thread over on the MFW board at http://forums.moneysavingexpert.com/showthread.php?t=5755807

would love to hear any pearls of wisdom from here too :)

Thanks
Escapar2020
«1

Comments

  • atush
    atush Posts: 18,726 Forumite
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    What is iur mtg rate? Do you have a work pension? Your tax rate?

    All things being equal- what you wont hear on the mtg free board is paying off a cheap mtg will bring you far less than pension saving.

    All things being equal means no debt apart from mtg, and an emergency savings cash pot of 3-12 months outgoings depending on age and circumstances.
  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    edited 5 December 2017 at 10:31PM
    Escapar2020 wrote: »
    I've been overpaying on my mortgage for some years, but in earnest for the last 12 months, since I gained a promotion (and became a high rate tax payer). ...My current balance is [£31,804], I'm on the SVR at 2.29% currently, the house is worth about £140k and I don't have any plans to ever move. ...


    Contribute enough to a pension of some sort to escape the 40% income tax. After that look around to see if there's still a better bet than overpaying. ISAs, maybe? High interest regular saver accounts?

    Why are you paying 2.29% on an LTV of about 20%? If anyone still provides remortgages on a sum as small as £30k consider getting one, and with a long life.
    Free the dunston one next time too.
  • westv
    westv Posts: 6,081 Forumite
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    I thought most lenders had a minimum value of £25k for mortgages but that might be out of date info.
  • Escapar2020
    Escapar2020 Posts: 136 Forumite
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    Thanks atush

    Ive put all my details in the MFW thread here: http://forums.moneysavingexpert.com/showthread.php?t=5755807, let me know if ive missed anything though
  • Escapar2020
    Escapar2020 Posts: 136 Forumite
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    Thanks kidmugsy

    I hadn't thought about paying more pension, so thanks, I'll look into it!

    Ive looked at switching mortgages, but have been put off by thenupfront setup costs and the limited ability to op
  • atush
    atush Posts: 18,726 Forumite
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    As a 40% taxpayer, every 100 into your pension costs you 60.

    Isnt that a far better deal than overpaying?

    Stop overpaying.
  • Escapar2020
    Escapar2020 Posts: 136 Forumite
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    atush wrote: »
    As a 40% taxpayer, every 100 into your pension costs you 60.

    Isnt that a far better deal than overpaying?

    Stop overpaying.
    Good point, well made! It would potentially mean that my money would be lcoked away for 20+ years, so would it help me to quit this job and change my lifestyle in a couple of years time?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Escapar2020 wrote: »
    Good point, well made! It would potentially mean that my money would be lcoked away for 20+ years, so would it help me to quit this job and change my lifestyle in a couple of years time?

    Spread your money across the options. Then you change easily direction as the future unfolds. The one certainty in life, is uncertainty.
  • atush
    atush Posts: 18,726 Forumite
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    Escapar2020 wrote: »
    Thanks atush

    Ive put all my details in the MFW thread here: http://forums.moneysavingexpert.com/showthread.php?t=5755807, let me know if ive missed anything though

    Sorry not a link chaser.

    Put relevant details in your OP here- copy and paste if you like.
  • atush
    atush Posts: 18,726 Forumite
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    Escapar2020 wrote: »
    Good point, well made! It would potentially mean that my money would be lcoked away for 20+ years, so would it help me to quit this job and change my lifestyle in a couple of years time?


    Again, not a link chaser- age?

    Given you cant get at pension before 55, you do need cash pot and perhaps S&S isas too- esp if your escape to a less stressful job is to be before 55.'

    But who knows how long 40% TR will last? I say fill your boots while you can.
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