Do we pay off our mortgage or draw down cash and put into my AVC towards my pension??

First post..looking for some advice please

We have overpaid our mortgage over the years and we now have a very small amount left to pay - around £1000, which will be paid within the next couple of months although the mortgage term is not due to end until in August 2023.

We wondered if we should draw down some money from the savings pot to have a luxury holiday, or we thought we could put some into my new AVC pot that I am trying to build towards my pension, so that we can keep the mortgage going until the end of the term.  The reason for these thoughts was that the interest is so low and we can afford to keep paying it and there are life insurance policies that I think are related only if we have an active mortgage.

Should we go with this plan or do you any of you have other options for us to consider?



  • My first post also! .. Although this is my goto site for anything monetary. 

    I've just paid off my draw down mortgage, I was comfortably in credit just prior to my end date, but then I had unexpected bills,, for which I used my credit balance.

    My suggestion, would not be to be too complacent. If you have other money available, then happy days! Use the other money for whatever an AVC pot is ( I really have no idea, until I google, what that may be). 

    I now need to find a ' normal 'bank account, that will hopefully give me cashback/switching incentive to join, as according to the chap I spoke to from my current lender (RBS one account)  I won't necessarily qualify for either , because a drawdown mortgage account is not usually the equilivent of a 'normal' bank account, for switching purposes.
  • I would suggest to pay into the AVC or sipp or other pension account if have other funds to maintain mortgage payments as only another couple months as compound interest and government top up in pension would be more beneficial
    Nurse striving for financial freedom
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