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what to do with extra money?

(6 Posts)
Anomaly Sun 25-Jan-15 10:59:47

We're very lucky as DH has a new job paying a lot more than his previous one. We were financially ok before but now have a fair bit of spare cash.

We're considering extra pension or overpaying the mortgage. How do you work out what to do for the best?

DreamingOfAHotDrink Mon 26-Jan-15 10:49:53

I would work on paying off the mortgage.

BroodySince22 Mon 26-Jan-15 12:11:48

I'd pay more each month off the mortgage too. But I'd save some as emergency funds, never hurts to have money put away for 'just in case'

holeinmyheart Sat 31-Jan-15 08:17:03

Yep pay off the mortgage. However this is the cheapest loaned money you will ever get. I would then use the equity to buy a BIL. Mortgage free houses mean that the rent is yours after tax.
Any extra to put away? I would try Zopa. Peer to Peer lending. It is paying good rates over five years. I have houses and money in Zopa.

whooshbangprettycolours Sat 31-Jan-15 21:05:35

With the tax uplift and the adjustment to net pay a pension payment might make real sense (particularly if he's near a pinch point £50k or £100k).

What is your pension provision? A pension is just an investment that you commit to until 55, with the new rules coming into play I'd def put it in the mix. ... that said some effort towards the mortgage is also a good idea.

bonhomme Sun 01-Feb-15 20:21:01

Pay off unsecured debts first (credit card), then ensure you have enough of savings cushion. Then, I would do a mix of pension and mortgage overpayment.

I concentrated on paying my mortgage off but wish I'd focused on my pension too - with money, I think the old saying 'don't have all your eggs in one basket' is a very sensible one. Plus with the pension, you will get tax relief depending on your tax rate.

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