O
The key point in both of these case studies is that you have fairly high mortgages in relation to your salaries and in relation to the value of the houses.
While you are both comfortable now, your financial comfort will be knocked way out of kilter by the arrival of children. Given that you are both planning to get married soon, that must be on the cards.
It is very likely that the government will change the pension rules so that those who pay tax at 20% will get more relief. You should definitely defer any pension contributions to then, apart from the contributions which are matched by your employer.
So, get the mortgage down as low as possible now. Consider it a form of savings for having kids. When they come along, you will have much lower repayments on your mortgage and much more equity in your home which would allow you take payment holidays or move to interest only.
Brendan
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