Pension Mortgage

This is the method of repaying a mortgage when it has been set up on an interest only basis. A pension fund is designed to mature on retirement so the mortgage loan term must end between the ages of 50 and 75 unless the borrower is in an industry where the Inland Revenue permits earlier retirement. Only twenty five percent of a pension fund is able to be taken as a tax free lump sum. It is this portion that can be utilized towards the repayment of a mortgage.

The downside of this method is it can reduce the money available to a borrower at retirement age.

Concept Mortgages Ltd is an appointed representative of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Services Authority
Concept Mortgages Limited is a Company registered in England no. 6213893