Over pay pension or mortgage?

jamesd

RuleTheWorld wrote: »

If a 40% tax earner go for the pension imo
if a 20% tax earner go for the mortgage imo (or rather it is not a clear decision in this bracket).

It's a clear decision even with no pension tax relief, so just what do you base your assertion about 20% not being clear when even nothing extra is clear?

UK average stock market return is around 5% plus inflation. Every penny paid off mortgage capital costs the difference between that and the mortgage interest rate. Tax relief is just cream on top of that underlying benefit.