Pension to pay off mortgage?

[Gin96]

Is it a good idea to take 25% tax free, of your pension to pay off your mortgage?

I think it's neutral. iE, you've got funds in a pension or you've got funds in property- really don't think it matters much either way so if you want the mortgage gone then sure, use the pension money. You're just moving money from one place to another

Definitely pay off your mortgage. You'll save interest and the monthly payment you're making. Check the penalty for repaying during a deal though or wait until the end of your current deal

I don’t have any penalty payments on my mortgage. I will get some financial advice, the more i think about it the more I think it’s the best option.

The only other thing to consider is that I believe/think (not an expert) your pension money if its in SIP is excluded from inheritance tax. It is definitely worth taking advice from an expert.

definitely

the amount you get in pension for that 25% is very unlikely to cover what you would be paying in mortgage

At any time you owe money on a mortgage, the lender has the right to taker your property from you to cover the debt. Clear the mortgage and this can NEVER happen. If it were me, the first opportunity I get to be mortgage free I'm taking it.

You only need to worry about inhertience tax if your estate is worth more than £325,000. People often gift money from 60+ to get their estate down below £325,000. If you gift money 7+ years before you pass on, the money isn't subjected to inhertience tax.

That's why you often hear of pensioners downsizing or spending lots of money on home renovations or giving their children money at pension age to minimise the impact of the 40% inheritance tax

Inheritance tax is £650k if your husband or wife passes on their allowance to there spouse, hopefully we should be ok 👍