What makes most sense

[Babytalkobsession]

Hi,

We're a family of 4 (2 children under 5).

We have a mortgage of £120k and a lovely home with a decent equity in it.

Our pensions are not great. I have £27k in one from a previous job, and am now paying in minimum % to my new employer pension. DH has only paid in since the legislation changed a few years ago (he works for a small firm).

We are mid 30s, no other debt apart from mortgage. Home extension completed, no real need to move again.

So, are we best to use surplus income to overpay mortgage? (Currently half way through a 3 year fixed - decent rate) or should we step up pension contributions?

If pension, should we look into a private pension or pay more into work ones?

Dh is higher rate tax payer. I'm not, as part time.

We're a few months off not needing to pay childcare which will give us £500 extra a month.

Thank you.

[nannynick]

I would use pension calculators to see what effect paying more into pension makes. You'd DH especially as he is a higher rate tax payer and thus gets more tax relief.

So bump your your pension, bump up his, and then remaining goes towards the mortgage.