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Pension mortgage |
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Pension mortgageA 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.Pension mortgageA type of personal pension plan which utilises the tax free lump sum entitlement from the pension fund at retirement age to repay a mortgage whilst the remainder is (and must be) used to provide a pension. Throughout the mortgage term the borrower pays interest to the lender such as a building society or bank whilst additionally making payments into the pension scheme. Tax relief is allowable on both the interest payments to the lender and on the contributions to the pension scheme which makes this type of plan attractive.Similar MatchesMortgage servicingMortgage servicingThe collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. Second mortgageSecond mortgageThe taking out of a mortgage on a property which is already mortgaged. This can be used to raise capital if the property has significantly increased in value and would involve finance companies rather than banks or building societies. Since the first mortgagee (lender) usually holds the deeds of the property, the second mortgagee will carry a higher risk and thus charges a considerably higher rate of interest. Fixed term reverse mortgageFixed term reverse mortgageA mortgage in which the lending institution provides payments to a homeowner for a fixed number of years. Blanket mortgageBlanket mortgageA mortgage that covers more than one property owned by the same borrower. Mortgage arrearsMortgage arrearsThe amount of back pay you owe your mortgage lender for failing to meet your mortgage requirements. Further SuggestionsMortgageeOpen end mortgage Equity linked mortgage reverse mortgage commercial mortgage Government National Mortgage Association (Ginnie Mae) Flexible mortgage Assumable mortgage Tracker mortgages Variable rate mortgages Euro mortgage Buy down mortgage Veterans Administration (VA) mortgage Purchase money mortgage All inclusive Trust Deed (wrap around mortgage) interest only mortgage Lehman Brothers Mortgage Backed Securities Index First mortgage Interest only mortgages Secondary Mortgage Market Mortgagee Growing Equity Mortgage (gem) Wholesale mortgage banking Wraparound mortgage Second Mortgage |
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