10k - should I pay off the mortgage or invest in a pension?

(8 Posts)
zookeeper Tue 17-Sep-13 17:11:12

Hi . I'm a single mum with three dcs aged 47 working p/t and on working tax credits. My only asset is my house worth 190k with a 10k mortgage. I have 10k savings and no debts and also a 4k float for emergencies/redundancies which I try not to touch.

I don't know whether to use the 10k to pay off my mortgage or invest it into a pension. Has anyone got any thoughts on this please?

Bithurt Tue 17-Sep-13 17:16:07

If it was me, I'd pay off the mortgage and then put some of money that I'd have been paying into the mortgage away every month.

zookeeper Tue 17-Sep-13 19:11:23

Bump

DisAstrophe Sun 22-Sep-13 22:33:22

4k is not an awful lot of money - if you lost your job or the boiler went then you'd burn through it pretty quick. I'd use 4 or 5 k to pay off mortgage and put the rest into an isa so any interest is tax free.
Do you have a work pension?

Moominmammacat Sun 13-Oct-13 16:00:47

Don't put it in a pension. Pay off mortgage or have fun. Isas better than pensions.

deepfriedsage Sun 13-Oct-13 16:02:58

She is on tax credits, can she have that many savings when claiming benefits?

Pay off the mortgage OP.

funnyperson Wed 16-Oct-13 14:30:53

Pay off the mortgage then you and the dc will always have a roof over your heads

Talkinpeace Wed 16-Oct-13 15:59:29

mortgage and cash ISA. NOT pension

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