Pension to pay mortgage

tony4147

I have a mortgage that has 13 years to run, at the moment I overpay by £200/month, I'm thinking of increasing the over payment by another £200 making a total of £400/month.

I'm a 40% tax payer aged 49, and pay £500/month into a pension by salary sacrifice.

With the 40%+ tax relief would I be better paying the £400/month into my pension and taking a lump sum at 55 to pay against the mortgage? instead of paying the £400 to the mortgage now?

littlelad

I'm doing the same thing only putting my mortgage over-payments into my AVC pot. I have an interest only mortgage on a very low rate (0.24 above BR) with 11 years left and I am a bit older than you, 54 aiming to retire at 59. I am on a DB pension scheme which allows 100% cash to be taken from AVC so long as 25% of total pension pot is not exceeded which I shall ensure does not happen. If I get close to that happening I will switch to ARCs for last 12 months.