Hi

been talking to a financial advisor recently (it was free so what the heck) to get a few new ideas and one interesting idea was paying the mortgage off with a FSAVC (free-standing AVC).

The reasoning is that

1) you keep interest payments at a maximum since the capital is not reducing.
2) the government adds tax refund at your highest rate to whatever you contribute (up to specified maximum)
3) choice of underlying investments (if you're with the right provider)


One issue is that you couldn't do this for all your properties becuase of the restrictions on contributions and also the tax-free lump sum at the end.

btw - what methods are people using to pay-off their BTLs. (I'd setup a poll here but not sure how to do it and my lunchbreak's over)

cheers