Pension Mortgage-your Pension Would Now Pay Off Your Mortgage

By: Steve c clark
How would you like that the company, which you work for, or your own business pays for your need to purchase a property? A pension mortgage is the best solution to the problem because you get tax relief on the interest payments and also on the money used to pay back the principal amount borrowed. It can be thought of to be an interest-only mortgage that relies on your pension plan to pay off the initial money you've borrowed.

Why and how you should go for it:

Every senior citizen of UK above the age of 60 is eligible. In addition, married couples would be eligible as joint borrowers with at least one of them being above 60 years of age. They are available only to the self-employed people in non-pension able employment or company directors owning at least 5% share of the company. The person applying for such schemes should be the owner of a self- acquired, self occupied residential property located in UK, with clear title indicating the ownership of the property. Also the property should be free from impediments. The remaining life of the property should be at least 20 years. Thus it can be noted that the amount received from the loan would depend on the present market value of the property. Furthermore, the interest rates and loaning period also depend on the current age of the borrower

There are a few things that have to be kept in mind. The mortgage term on a pension mortgage will expire on your retirement (normally between the ages of 60-75). One-fourth (1/4) of the pension fund can be taken as a cash lump sum. This lump sum only can be used to repay the cash mortgage.

Top Searches on
Mortgages
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Mortgages