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Overpay Mortgage or Pension

15ToGo
Posts: 2 Newbie
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?
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?
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Would this be better answered on the mortgage board?ISA £1675
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