Q I am almost 60 and now find that my pension mortgage
is not going to repay all my interest-only mortgage.
First, they can, as Republican Christine Todd Whitman and subsequent governors of New Jersey did, simply stop contributing money to the pension fund or tap their credit card to pay the pension mortgage
. This is especially easy to pull off during periods of irrational exuberance.
A pension mortgage
works with the capital sum remaining outstanding for the length of the loan on which you pay interest.
I took out a pounds 50,000 pension mortgage
With a pension mortgage
, you not only get tax relief on the interest on the loan, you also get tax relief (at your highest rate of tax) on the contributions you make to the pension.
A PENSION mortgage
builds up a personal pension which should pay off the mortgage.
Q I WAS sold a pension mortgage
some years ago which is now showing a large potential shortfall.
Mr Boulding also believes that the tax changes could revive the pension mortgage
as a savings option because investors can now make extra payments to ensure that their plan both pays off the mortgage and gives them the level of pension they want.
She has a joint pension mortgage
with husband Steve, 40, a self-employed builder.
If you are 22 and buying your first home, a pension mortgage
will probably not be suitable as you will be tying yourself to paying interest on the loan for at least 28 years.
A PENSION MORTGAGE
is a lot dearer - pounds 512 a month including a pension contribution of pounds 184.
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.