Would you use mortgage debt to fund carry forward relief?

peterg1965

How much is the house worth that will have a £300k mortgage on it if you pursue this plan? If you have significant equity this also de risks this option.

Thrugelmir

jamesd wrote: »

You smile and be happy that you are not invested in the markets that take a dive, of course. Or you wait until after the recovery. My current preference for avoiding this risk is P2P, where I'm currently able to get likely returns well in excess of the long term average of the UK stock market, without exposure to the 40% value drop risk that exists in that market.

Which particular "risk" are you trying to avoid. Risk comes in many forms. Not just one. Over confidence in ones own abilities is the downfall of even the best investor.

kidmugsy

Thrugelmir wrote: »

Over confidence in ones own abilities is the downfall of even the best investor.

That's why concentrating on keeping taxes and costs down is a good idea - it's pure gain over-and-above any investment return.

nick777vvv

Thanks for all the contributions.

Clearly my sneaky plan is loaded with ifs', but's and maybe's. And I'll be honest, much as I understand the basics, I'll need someone far more clued up than me to review all the angles before I dive in.

Ultimately, it is a risk/reward play. Yes, I could lose my job, yes, the market could tank, yes, house prices could crash, yes, interest rates could quadruple etc etc. But those variables have been in place forever and will continue to be so.

I guess it boils down to the chance to grab the extra relief whilst it's still being offered against the chances of the whole thing going tits up before I can get my hands back on the capital in five years...

peterg1965

Hi can't see GO having another look at pensions tax relief in this parliament. He has signalled his intent and future direction of travel, I believe, with the Lifetime ISA.

OP, another option is to keep your powder dry until early 2020, I guess you will be 55 then or close to it, if your situation remains the same, maybe that's the time to do this. At least you can instantly take the PCLS and couples with the HRT relief. As you say, it's not an easy decision to make though!

kidmugsy

nick777vvv wrote: »

Traditional thinking says 'keep paying down the mortgage.

Traditional thinking is about the past. Better to consider the present and future.

Thrugelmir

kidmugsy wrote: »

Traditional thinking is about the past. Better to consider the present and future.

The future is uncertain. That's one of life's certainties.

atush

With 40% TR it is an attractive notion- I dont know about you guys, but I didnt lose over 40% of my portfolio during the last (huge) crash.

while i would not suggest using all of your cash available to do so, a moderate push into pensions might be advisable as a HRT payer.

The key is moderation dont go all in.

jamesd

Thrugelmir wrote: »

Which particular "risk" are you trying to avoid.

The one you mentioned, that of markets taking a dive. Which can be avoided by not being invested in markets that can take a dive.

RuleTheWorld

A bit closer to 55 I would have said no brainer.