To pay off mortgage or not?

D

Dalta!

New Member
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7
Looking to organise finances wisely...

Remaining mortgage is 122K over 12yrs @ fixed rate of 2.1%
Fixed rate is up Sept '26. Unlikely to see such a good interest rate again.
I have other invested money which could stay where it is or could use this to pay off mortgage entirely.

A big aim is to up the pension pot with AVC's. Thinking is, if the mortgage was cleared, I could use that monthly money to make up my shortfall in AVC's.

I would love to be mortgage free but is it the best strategic move.....I feel it may be but would love some thoughts please
 
Probably worth starting with this key post...

Key Post - Overpay mortgage or contribute to pension or do something else?

This comes up in a lot of different threads, so I will set out some principles here to kick off the discussion. I will edit it in the light of feedback. There are many options with your savings in excess of your emergency cash fund Pay down your mortgage Build up a fund to enable you to trade...
www.askaboutmoney.com
 
One potential option to consider, if what you're really trying to get at is shifting more of your wealth into your pension pot, would be to sell off a few €1000s of the investment (presuming it can be sold in parts) each year, while keeping under the CGT threshold, and put that money into your pension.

Because if you sell the investment all at once, you'll likely face a big tax hit.
 
Dalta! said:
I have other invested money which could stay where it is or could use this to pay off mortgage entirely.
Click to expand...
Where is this money invested and how much is it?
You may want to do a Money Makeover so that people can comment in the context of more comprehensive information about your overall financial/personal circumstances:

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
www.askaboutmoney.com
gaelic_oc said:
while keeping under the CGT threshold
Click to expand...
It may not be subject to CGT - e.g. if it's a unit linked fund subject to 8 year deemed disposal and exit tax of 41%.
 
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