‘My mortgage payments have doubled – should I use my £400k pension to pay it off?’
Telegraph
23-05-22 06:00
A man in his 70s from Oxfordshire is worried about losing money as the Bank of England raises rates. David Peddy holds a £396,237 St James's Place pension, £139,981 in a tax-free ISA and £42,000 in cash savings. He is thinking about paying off his £103,895 mortgage using the ISA and pension, waiting for capital gains from a small Lithium mining company in which he has invested, or waiting for mortgage rates to decrease. Despite reaching the "SVR" - the standard variable rate - which has more than doubled his repayments to £323 ($416) a month, economists suggest Peddy should wait another two years until the overpayment charges end.