UK Landlord Forum / Life

Paid my car off so now I have a spare £200 a month now. Not sure what to do with it as interest rates are rubbish. I was going to over pay on the mortgage but my father in law thinks it's a bad idea and I'm better off paying it into my Nest pension.

What's the best option?

You don't say why your father in law thinks paying down debt is a had idea. Nor his credentials.

Personally, I think paying down debt is a great idea and I overpay on all my mortgages. Sometimes it annoys me that I am limited on some. However, as debt goes, that secured against property is the best kind of debt... so don't fret about it too much. Putting £200 away each month of course means it's not working very hard for you... but it's also not very much so how hard can it be expected to work? Letting it accumulate quietly for a while until it becomes something grand can't be too problematic.

He's a retired heating engineer. He thinks I'm silly over paying because he seems to think I'll get extra tax relief over time which I think is incorrect.

Like you I think it's better off long term to pay off debt

given the current uncertainty and the situation in the world, I think it is better to repay the debt