Mortgage over payment query

[DonkeyApple]

egor110 said:

DonkeyApple said:

If you are going to be over 55 by 2019 then putting that overpayment into a SIPP and claiming your income tax back has to be the best way. It would be simulating an interest rate of maybe 10 times what your mortgage is costing?

I'll be 45 not 55 in 2019

Then of little use I guess.

I would be interested in hearing from IFAs etc as to why no one seems to use extra pension contributions as they approach 55 as the best means to boost savings returns. Unless there is a glaring flaw in the concept?

[Ken Figenus]

DonkeyApple said:

If you are going to be over 55 by 2019 then putting that overpayment into a SIPP and claiming your income tax back has to be the best way. It would be simulating an interest rate of maybe 10 times what your mortgage is costing?

This! I was lucky enough to be offloaded by Northern Rock when they decided they didn't want customers anymore and so whacked their interest right up - I switched and chose a tracker . Making overpayments therefore sounds like a no brainer but far better to put that sum in a pension (have a SASS) and get the taxback; I can then pull a lump sum to pay the mortgage off when I'm 55. Except I bought a car instead - so its all on hold LOL. Life comes first - never forget that