We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
AVCs as lump sum savings vehicle to pay off mortgage
Who8
Posts: 4 Newbie
I wonder if anyone can advise me whether the following stacks up as a coherent plan.
I have the benefit of membership of the Local Government Pension Scheme and I earn a good wage. I have recently extended my mortgage borrowing for home improvements and would like to begin paying into AVCs as an additional mortgage repayment vehicle. The plan would be to take the whole AVC fund as a lump sum.
The major benefit it seems, is the tax relief on the contributions. As a higher rate taxpayer, the taxman's contribution to my mortgage investment will be £40 out of every £100 a month that I save in this way - which seems too good to miss out on.
Is there a catch which I am failing to spot?
Thanks in advance for any assistance.
I have the benefit of membership of the Local Government Pension Scheme and I earn a good wage. I have recently extended my mortgage borrowing for home improvements and would like to begin paying into AVCs as an additional mortgage repayment vehicle. The plan would be to take the whole AVC fund as a lump sum.
The major benefit it seems, is the tax relief on the contributions. As a higher rate taxpayer, the taxman's contribution to my mortgage investment will be £40 out of every £100 a month that I save in this way - which seems too good to miss out on.
Is there a catch which I am failing to spot?
Thanks in advance for any assistance.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards