Pension mortgages are becoming more and more popular. With a pension mortgage you pay a premium each month into a pension plan in addition to the interest due on the mortgage over its term. These are only available to people who are self employed, people who are not self-employed but have no pension plan at their job and company directors who own more than 5% of a company. Mortgage terms on pension mortgages stop when you retire (between 60 and 75 years old). At the end of the mortgage, you get a tax-free lump sum. If this lump sum is enough to pay off what is left on your mortgage you can then put the money in an ARF or take it as cash. If you are under 75 years old and make below a certain amount the law says you have to keep a certain amount in an approved minimum retirement fund. Pension mortgage lump sums can be offset against rental income in any year and can be carried forward.

These are tax efficient mortgages but they are not flexible at all. You cannot touch your funds until 50 years old. This also means you cannot pay off your mortgage before then. Most pensions are used to finance your "golden years". By using part of the lump sum, payment to pay off your mortgage the amount you have left to live on later is also lessened.

There are many lenders that offer these pension mortgages. Some are available online for your convenience, some are not. When looking for a lender make sure you screen them all and contact them all personally. Look for the one that seems to know the most about pension mortgages and has more importantly, written up the most of these mortgages.

These mortgages, regardless what some people say, are a great way to save for retirement, give you numerous tax benefits while in effect and when you get your lump sum payment. You owe to yourself to at least look into a pension mortgage and allow our company to show you the many benefits of them. They really are a good way to save for your golden years.

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