This is an interest only mortgage that is supported by a Personal Pension Plan. Interest only is paid to the lender and in addition premiums are paid into a Personal Pension Plan. On retirement a portion of the personal pension fund can be taken as a tax-free cash sum and it is this cash lump sum (or a part of it) which is used to repay the mortgage debt. The disadvantage of this type of mortgage is that the mortgage term must run through to anticipated retirement age (for the younger borrower this could exceed 25 years) and part of the retirement fund is used to repay the mortgage debt. The advantage is that the pension premiums attract tax relief at the borrowers highest rate.
When there is a "promise to repay" the mortgage, using the lump sum cash payment, payable at retirement. As a pension cannot be assigned, the pension policy cannot be used as security.
A type of interest-only mortgage where your mortgage payments are combined with payments into your personal pension fund. This is designed to mature on your 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. The pension also needs to provide you with an income during retirement, so only twenty five percent of the pension fund can be taken as a lump sum to pay of your mortgage.
an interest-only mortgage where the repayment vehicle is a personal pension. The tax-free lump sum available at maturity is earmarked to pay off the mortgage.
a mortgage which takes advantage of the tax relief available for pensions
an interest only mortgage with an additional investment plan in the form of a personal pension
An interest-only mortgage where it is intended the capital will be repaid from the cash sum that may be received from the pension fund at maturity.
A mortgage secured by repayment of the loan from the tax-free cash option available from a pension scheme at retirement.
With a pension mortgage, your repayments cover only the interest on the amount you have borrowed. At the same time, separate payments are made into a personal pension plan. At the end of your mortgage term, the proceeds of the pension plan are used to pay off the mortgage. Any money left over after the mortgage has been cleared is used to give you a normal pension. A level term life assurance policy for the loan amount will be required by the lender
See Endowment Mortgage. Prospective tax-free cash from a pension arrangement is earmarked to repay the mortgage capital.
A pension plan which uses the lump sum to repay a mortgage.
See Types of Mortgage - Pension Mortgage
An interest only mortgage that will use the ‘tax free cashâ€(tm) element of a personal pension plan to repay the mortgage at the end of the term. Personal pension plans were first introduced in 1986, with very generous tax benefits to encourage people to save for their own retirement rather than relying on the State pension.
An interest-only mortgage where the borrower will use the tax free cash from a pension to repay the loan at the end of the mortgage term.
Monthly repayments made up of a) Interest on loan and b) contribution to a personal pension scheme. The loan on the house is paid off in one lump sum at the end of the loan period.
This is an interest only mortgage and it is paid off from the proceeds of the tax-free cash sum at maturity.
A MORTGAGE WHERE YOU PAY US INTEREST ONLY ON THE AMOUNT BORROWED - IN ADDITION YOU PAY CONTRIBUTIONS TO YOUR PENSION SCHEME INTENDED TO BE SUFFICIENT TO PAY OFF THE AMOUNT YOU HAVE BORROWED AT THE END OF THE REPAYMENT PERIOD. YOU WILL BE REQUIRED TO TAKE OUT LIFE ASSURANCE COVER SO THAT THE MORTGAGE CAN BE PAID OFF IF YOU DIE DURING THE MORTGAGE TERM.
A mortgage loan by a pensions insurer, repayable out of the lump sum available at maturity of the insurance.
This type of mortgage is usually offered to individuals who are self-employed. You make monthly repayments of interest on the loan to the lender. Additionally, you make contributions to a personal pension, which will provide a tax-free lump sum and taxed regular income upon retirement. Most, if not all, of the lump sum is used to clear your mortgage loan at that date.
Mortgage available to self employed people, people without a pension scheme and owner directors of companies. Monthly interest payments are made to the lender, and a pension policy is set up to pay off the mortgage when the mortgage holder retires. It can be very tax efficient. Speak to your broker for more details. NMS brokers can arrange Pension Mortgages in IReland
An interest only mortgage where the capital is paid off through the proceeds of a lump sum from a personal pension. The arrangement provides for a pension after the mortgage is redeemed.
Mortgage whose capital repayment is funded by contributions to a personal pension. The tax breaks given to pension saving may boost contributions by making them gross instead of net of tax. There is an option available to take a lump sum, of up to 25% of the value of the accumulated pension fund. This lump sum aims to repay the loan's capital at the end of the term. The past performance is not necessarily a guide to future performance
An interest-only mortgage through which capital is paid off from the proceeds of the commutable lump sum derived from a personal pension. The arrangement also provides for a pension after the mortgage is redeemed.