Definition of pension mortgage in English:
A mortgage in which the borrower repays interest only and also contributes to a pension plan designed to provide an eventual tax-free lump sum, part of which is used to repay the capital at the end of the mortgage period and the rest to provide a pension for the borrower’s retirement.
- Although similar to endowment mortgages, a pension plan backs a pension mortgage instead of an endowment policy.
- The self-employed can also use a personal pension to fund a pension mortgage; the tax advantages are very significant.
- Acquiring property through a pension vehicle has been possible for several years but was usually confined to self-employed professionals and others who might, for example, have acquired their business premises via a pension mortgage.
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.
Most popular in the US
Most popular in the UK
Most popular in Canada
Most popular in Australia
Most popular in Malaysia
Most popular in Pakistan