Borrow£75k on mortgage- invest in pension

Hi
I’m in the Uk. I’m 49.
I have no pension
I have several rental properties with a LTV about 30% altogether.
I make a profit of about 30k a year on property and pay tax on same
I live in Uk and my income is £100000
I can borrow 75 k on my mortgage and I believe it will net me 90 k when I invest in a pension bad I get 15k reduces from my tax bill so I spend 60 k to get 90k.
The top up is 1.95%

Is this a good idea?
NBC

This is an Irish site so the rules surrounding pension contributions may be different than in the UK.

As you have a good LTV and a strong income I would be maxing whatever I could into starting a pension now. You have an undiversified current portfolio (assuming all in the UK) that will surely fluctuate in the short term given Brexit so I would be looking to put money into other asset classes.

Given the low rate at which you can borrow to contribute to a pension it certainly looks like an attractive option if the figures you mention above are correct.

You are probably better off getting independent financial advice on your situation as the potential savings could be significant.

nbc said:

I have several rental properties with a LTV about 30% altogether.
I make a profit of about 30k a year on property and pay tax on same

Click to expand...

If you are making £30k a year from property, then you probably have too much property. I know that 30% seems like a very low Loan to Value and interest rates are low in the UK.

But it seems that selling off a few properties to reduce your borrowing or to invest in equities would be the right strategy.

Not sure about pensions in the UK. Aren't there better ways to invest? And these might be more flexible if you plan on returning to Ireland eventually.

Brendan

Thanks David/Brendan. My property is split between Ireland and UK.
I think pensions in the Uk similar to Ireland. I get 40% relief on contributions.
Is the idea of raising finance on your home at low interest rates not make this idea a no brainer?
I could also sell a property and invest this in my pension too instead of borrowing but with a rate of < 2% it just seems a really good idea to me but I'm afraid I'm not seeing the potential downsides as I'm not experienced in this field...