Pension Mortgages

This is where you have an interest only mortgage and use the proceeds from a pension plan to repay the capital outstanding at the end of the mortgage term. A pension plan is an investment which benefits from tax relief on contributions and tax free growth on the investment funds so from that perspective it is a very tax efficient way of accumulating capital.

Pension Payments

You make two payments, one to the lender being the interest on your borrowings and the other to a personal pension plan. The pension contribution is geared to there being sufficient tax-free cash to repay the loan in full at maturity and provide you with an income as well. However, this is very much dependent on the investment return and there may not be enough capital. The other limitations are that:-

  • you can only take 25% of your fund as tax free cash (the balance is taxed as income)
  • you can only take the benefits after the age of 55.
  • current regulations may be subject to change in the future.

Please be aware that by using the tax free cash to repay a mortgage you are reducing the fund available to purchase an income.
Please be aware of the nature of the risk involved with this type of investment and that the value of your investment may go down as well as up. Past performance is not necessarily a guide to future returns and therefore it is possible that you may not get back the full amount invested.

Mortgage Advice

David Burnell Financial Services Ltd can help you with Mortgage advice. We are independent advisers offering high quality, independent financial advice.

We are here to help find the right mortgage for you. If you are unsure about what you need we can help so that you make an informed home-buying choice with confidence.

Our services can be paid for by a fee or commission basis. Typical fees would start from £295 and be agreed before any work is carried out.

> Please view our client agreement for further information

your home may be repossessed if you do not keep up your repayments on your mortgage
always be sure you can afford the repayments before entering into a credit agreement
You should not proceed to purchase any product without seeking independent financial advice

Written quotations are available on request. Loans subject to status.

Please be aware of the nature of the risk involved with this type of investment and that the value of your investment may go down as well as up.  Past performance is not necessarily a guide to future returns and therefore it is possible that you may not get back the full amount invested.

Contact us for Mortgage Advice or for more Information...

All contact is treated in the strictest of confidence.
Tel: 0115 945 5199 between 8.30am and 5.30pm Monday to Friday - Email: info@davidburnell.co.uk

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