pension linked plans
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Pension linked mortgages work in a similar way to endowment mortgages but instead of having a policy you will place all your payments into your pension plan and when the mortgage term is finished or you decide to retire the outstanding balance is taken from the lump sum you receive from your pension which is of course tax free. Pension linked mortgages can only be taken up by someone who is already a homeowner and already has a pension plan in place, these tend to be people who are either self employed or work for a company that doesnt offer a pension scheme in house.
You can also think of pension linked mortgages as a different kind of interest only mortgage but instead when you are paying towards your pension plan you will also be paying towards your life assurance which will provide a lump sum and also give you a pension when you retire. The scheme depending on how old you are can last up to around fourty five years, when you decide you wish to retire the lender will then ask for the outstanding balance if there is any, and this can be taken from the lump sum.
Pension linked mortgages can have huge tax benefits but how much you can end up with all depends on market performance and the people investing your money, pension rules can be very complicated as well so please speak to our advisers and ensure you fully understand everything before taking the plunge, our advisers know the ins and outs of all the pension linked mortgages and will advise you accordingly, please do not feel afraid to ask us anything if you do not know something that is what we are here for, if you need more details on these mortgages then please contact us and speak to one of our friendly staff or alternatively fill in the online forms for more details to be sent direct to your home, below is a list of the available mortgages and the rate at which they are to be paid back.
You must keep up repayments on any loans taken out or you run the risk of losing your home, an incentive payment made by the lender to the borrower upon completion of a mortgage. Payments made as cashbacks may be treated as gifts and subject to capital gains tax. Whilst every care has been taken when producing the information in this guide no guarantee can be given as to its accuracy. Network Data Limited does not accept responsibility or liability for any special, incidental, consequential, indirect or punitive damages arising from the use of this information.