Should I cash in a pension to shorten a mortgage?

Stivibat

We have an offset mortgage (base rate tracker) currently at 7.09%. Still owing is £30,000. I have just used a repayment calculator and found out that as things stand we will have paid this off in 3 years. We are currently paying approx. 700 per month and then the interest on top of that.

My main pension (teachers pension) comes up in 18 months.

I have 2 smaller pensions from my handful of years in the private sector. Amounting to £18,000. These are obviously not going to pay much when I activate them.

Would it be a good idea to withdraw these two and take the tax hit of 20% and pay this money (15,000ish after tax) into the mortgage?

This would mean the mortgage would have14 months as opposed to 36 months As I work it out this would save me nearly 2 years of monthly payments of £700.00. Or am I missing something?

beanielou

You would be better to post this on the mortgage & endownments sub board.