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Not specific to mortgages, and obviously ignores the safety-net side of things, but people always say pay off debts before adding to savings, since no savings account will accrue more interest than you are adding to the debt
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What mortgage are you currently on, and do you know what the early repayment charges are? I'm wondering about the same thing, but haven't yet figured out how much it will cost me in real terms.
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We were in roughly the same boat as you last year and decided that a regular mortgage payment that we were used to paying was easier than trying to save and freed up an immediate block of cash for furnishing the house/repaying some debt/investing/emergency fund.
The current investment (S&S ISA) return % is over 6x the mortgage interest %, so we’re approx cost neutral for the year (if not slightly ahead). It’s not a pension and we’re not risk averse so YMMV.
I can see the appeal of mortgage free though, if we hadn’t needed to repay a family mortgage as well, we probably would have on balance.
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branwen
J0nathan
Dramatic_Hammer
@CanonAxe
We are an interesting dilemma, we are looking to sell our 2 bed flat in SE London and move to a 3 bed near the sea. If we sold our flat for the going rate we could purchase the seaside home mortgage free but it wouldn't leave us any cash we have emergency cash but not much. If we took a small mortgage but then we would have some money left over for from the sell of our house which we could invest into a pension. I'm keen to just go mortgage free and figure out the pension part later, wife isn't that keen.