You make two payments per month. One to the lender to repay the interest on your borrowings and another into a personal pension plan. The aim is to build up your pension fund sufficiently to repay the loan and to provide you with a retirement income.
ADVANTAGES: Has tax advantages, as the contributions you make to the pension plan attract tax relief at the highest rate of tax you pay.
DISADVANTAGES: You must ensure your pension is well funded to ensure you have sufficient to repay your loan and provide for your retirement. The tax free lump sum which is paid on retirement is used to repay the mortgage loan, but there is no guarantee that there will be sufficient funds to do so.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Pension Mortgage
| Norfolk Financial Services Ltd is an appointed representative of Virtual Net (Europe) PLC which is authorised and regulated by the Financial Services Authority. Virtual Net (Europe) PLC is entered on the FSA register (www.fsa.gov.uk/register/) under reference 209569 |
| The information contained in this web site is for general
information only and is not financial, investment or
tax advice. The guidance contained within this website
is subject to the UK Regulatory regime and is therefore
primarily restricted to consumers based in the UK. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. |