Chance to get rid of the mortgage

[egor110]

Welshbeef said:

egor110 said:

I've paid the mortgage off now , but to answer your questions.

Was over paying by £200 month so £700

No other debt .

So £8.4k per year your cash pot ISA or S&S ISA will now continue to grow.

Think of it another way it's the same value as the state pension. So every year you save (in addition to private pension) your going to have in effect 2x State pension + private pension for retirement --- OR you could retire x years earlier by using this saving to effectively start the state pension sooner.



One note - a friend of mine this sept will clear his mortgage (he is 36) it is a lovely house easily he would never need to move again.
However they have already committed to buy a vastly more expensive house more land bigger pad in a really top end area. Which mortgage wise means he is about to commence a new 25 year mortgage.
I think the idea is Coke retirement age downsize to take the cash out but live in the same area. Leveraging the borrowing for higher tax free capital gains on principle primary residence.
I bet they will never downgrade though.

Still getting my head around not having a mortgage , but the immediate plan is to just keep paying the £700 into multiple tescos savings accounts as you can save £3000 at 5% and can open 3 of the accounts.

Is there any point in cash isa's anymore now you don't get taxed on savings ?

I'm on leave again in august so think we'll go and see the ifa and see what he recommends , trouble is re stocks and shares my attitude is very cautious .

[KTF]

Cash isas, no. Stock and shares, yes.

I have maxed out the available high interest current accounts, filled this years isa s&s allowance, put a reasonable chunk in P2P, some in premium bonds (might as well), various regular savers. Once you get a bit of momentum it starts snowballing.

And still I go and do the stty 9-5. If you don't enjoy your work then you will enjoy it less when the main 'bill' has gone. I expected that to happen though.

[anonymous-user]

bompey said:

Pay off the mortgage, then whatever the mortgage payment was pay that into your pension as increased contributions. Make sure you do self assessment to claim the additional tax back or do it via your employer.

What additional tax?

[Welshbeef]

Jimboka said:

What additional tax?

If your a higher rate tax payer and pay into a pension your employer will only give you 20% grossing up you need to claim he additional 20% via self assessment.