Using Pension Fund To Pay Off Mortgage

steve_church

I have a mortgge of £31,500, being paid off over 6 years, costing me around £420 per month. I pay £250 a month into a pension fund. If I want, I can withdraw £6,150 (taxable) from my fund. Should I use this to pay off my mortgage more quickly?

Yorkie1

I am not an expert. But if you can manage the repayments without sacrificing your future pension, then I would leave the pension alone.

dunstonh

If I want, I can withdraw £6,150 (taxable) from my fund.

You cannot draw money from a pension unless you are over age 55 (or have a protected scheme age under that or ill health).

If you are talking about commencing your pension early then you are affectively robbing your retirement to pay for something now. Chances are the pension is far better than the mortgage and doing it would be wrong. However, on so little detail it is impossible to say.

Joe_Bloggs

£31500 / 6 = £5250 per year
£5250 /12 = £437 per month.
Keep that mortgage as they appear to be paying you interest.
J_B.