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Overpay Mortgage or Pension

I have just agreed a new 10 year fixed rate deal at 3.99% on a 205K mortgage over 20 years. I am allowed to make 5% overpayments. I am in a position to over pay by several hundred £s per month however all of this income is in the 40% tax band and a good chunk takes me over £50K which hits our CB.


I am struggling to decide where I would be better putting this additional cash. Should I overpay the mortgage or should I put it into my pension and then using the enlarged pot to draw down tax free cash in 15 years (earliest I can do this) to pay a lump sum off the mortgage?


Or are there any other ideas?

Comments

  • moohound
    moohound Posts: 1,209 Forumite
    Debt-free and Proud!
    Would this be better answered on the mortgage board?
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