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Pay down mortgage or put it into Avc

  • 14-10-2017 9:57am
    #1
    adam88
    Registered Users Posts: 1,609 ✭✭✭


    Hi all. Just a query,

    I've a few k spare. Single figures and 25 yrs left in mortgage.

    Would I be better off putting it against my mortgage or putting it against an Avc.

    Im 29


Comments

  • #2
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    adam88 wrote: »
    Hi all. Just a query,

    I've a few k spare. Single figures and 25 yrs left in mortgage.

    Would I be better off putting it against my mortgage or putting it against an Avc.

    Im 29

    With the AVC, it's tax relievable at your highest rate, so you'll get a return. So if you pay tax at 40% you will get a 40% repayment of tax (subject to conditions). If you invest before 31st October and elect to put it back to 2016 (again before 31st October), you will get an immediate repayment, otherwise you will get it in January.

    You could then use the 40% return against your mortgage. Just an idea


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