Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • kezzygirl
    • By kezzygirl 15th Sep 18, 8:42 PM
    • 674Posts
    • 710Thanks
    kezzygirl
    How did you do it?
    • #1
    • 15th Sep 18, 8:42 PM
    How did you do it? 15th Sep 18 at 8:42 PM
    Hi everyone,, I am keen to start over paying our mortgage, but we still have some outstanding debts that are interest free for approximately the next 2 years. Obviously, we are paying interest on our mortgage of about 3.4%- should I wait to pay off the debt THEN focus on the mortgage overpayments or over pay and reduce the mortgage whilst servicing the debt? Thanks in advance!
Page 1
    • AnotherJoe
    • By AnotherJoe 15th Sep 18, 8:57 PM
    • 10,589 Posts
    • 12,119 Thanks
    AnotherJoe
    • #2
    • 15th Sep 18, 8:57 PM
    • #2
    • 15th Sep 18, 8:57 PM
    Once I wised up, I let time and inflation reduce my mortgage and put more into my pension.


    And, somewhat in contrast to that logical approach, though it may seem wrong mathematically I would work on getting rid of the interest free loans first because its easy to forget about them, so overpaying mortgage or pension gives you a false picture how much you owe* as that debt fades into the background, and what happens if you cant roll them to another card in a couple of years time? Most likely they will jump to 15 or 20% or some such.


    * Its not uncommon to have someone here post something like "I saved up 20k for my deposit" and then find they owe say 20k in 0% rate cards. Well heck you didn't save anything at all then, you just borrowed it at 0% !
    • kezzygirl
    • By kezzygirl 15th Sep 18, 9:03 PM
    • 674 Posts
    • 710 Thanks
    kezzygirl
    • #3
    • 15th Sep 18, 9:03 PM
    • #3
    • 15th Sep 18, 9:03 PM
    Thanks anotherjoe. I have a pension with the nhs that comes out of my wages monthly but plan to open a lisa next tax year and put some cash in there.
    • AnotherJoe
    • By AnotherJoe 15th Sep 18, 9:38 PM
    • 10,589 Posts
    • 12,119 Thanks
    AnotherJoe
    • #4
    • 15th Sep 18, 9:38 PM
    • #4
    • 15th Sep 18, 9:38 PM
    Thanks anotherjoe. I have a pension with the nhs that comes out of my wages monthly but plan to open a LISA next tax year and put some cash in there.
    Originally posted by kezzygirl
    The NHS is a great pension but the downside is the age you can take it so yes I agree a LISA or some other personal pension is a good second plan to bridge that gap. FWIW if you will be a high rate taxpayer, then a personal pension beats a LISA hands down. PLus you can take a personal pension 5 years earlier than a LISA.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

137Posts Today

1,861Users online

Martin's Twitter