A Pension Mortgages were sold mainly in the 1980s and 90s due to the tax relief associated with pensions - paying into a pension is, for some people, a potentially attractive way to build up a lump sum that can be used to pay off an interest-only mortgage loan.
Q I am almost 60 and now find that my pension mortgage is not going to repay all my interest-only mortgage.
However, this never really transpired and pension mortgages
, where the loan was repaid from the tax free lump sum at retirement, also fell out of favour.
These days you can take your pick from Fixed Rate, Variable Rate, Discount Off The Variable Rate, Capped Mortgages, PEP Mortgages, there are even Pension Mortgages
William's Life Pension Mortgages
and Insurance Services of Ilkeston, Derbyshire, failed to comply with two rulings.
With endowment and pension mortgages
you repay the interest every month while making a second payment into an endowment fund or pension plan.
are tax-efficient in that all contributions are tax deductible at your top tax rate.
The biggest advantage of pension mortgages
is that they are extremely "tax efficient", providing customers with double tax relief.
That faces competition from PEP and pension mortgages
where you invest in a PEP or pension plan instead.