For years, my plan has been to pay off my tracker mortgage in the next few years. I was overpaying for a while, but stopped that (on the advice of my financial guy and several posts on here). I have a savings account that is due to mature in 3 years which should cover the outstanding mortgage (terms and conditions apply), so that was as rock solid a plan as I could handle.
Then this weekend, I (finally) did some maths, and roughly determined that my mortgage interest savings will be pretty minuscule, less than 4k, which I admit surprised me considering how much time I was going to be saving off the life of the mortgage (10-12 years).
However, I also have had a plan to increase my company pension contributions once the mortgage has been paid off. My pay cheque doesn't allow for me to pay a mortgage and the max pension contribution, sadly. However, if I paid off my mortgage, I could easily increase my contrib to the maximum. Going for maximum now vs in 10-12 years does seem to have quite a large effect on my pension if my back-of-the-envelope calculations are anything to go by.
Most of the threads I could find seemed to be a choice between paying off a mortgage OR increasing pension, but what about increasing pension BY paying off mortgage?
Then this weekend, I (finally) did some maths, and roughly determined that my mortgage interest savings will be pretty minuscule, less than 4k, which I admit surprised me considering how much time I was going to be saving off the life of the mortgage (10-12 years).
However, I also have had a plan to increase my company pension contributions once the mortgage has been paid off. My pay cheque doesn't allow for me to pay a mortgage and the max pension contribution, sadly. However, if I paid off my mortgage, I could easily increase my contrib to the maximum. Going for maximum now vs in 10-12 years does seem to have quite a large effect on my pension if my back-of-the-envelope calculations are anything to go by.
Most of the threads I could find seemed to be a choice between paying off a mortgage OR increasing pension, but what about increasing pension BY paying off mortgage?