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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 MatchesVariable rate mortgageVariable rate mortgageA mortgage where the interest rate is not fixed and which is dependent on influences such as interest rates on Treasury securities in the US or base rate in the UK. 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. Foreign currency mortgageForeign currency mortgageIt is possible to get a mortgage for your home in the UK in a mortgage denominated in a foreign currency. It sometimes gives you the opportunity to borrow money at a lower rate of interest than is possible in the UK. You do this by choosing a currency whose country has lower interest rates than we have here. Lower interest rates should mean lower repayments of both capital and interest or a shorter mortgage term. The mortgage does not have to be in any single currency. There are lenders who will allow you to spread your mortgage across a range of different currencies. This could be seen as spreading the risk Mortgage cash surplusMortgage cash surplusMoney left over at the end of a mortgage term, over and above the amount required to pay back the debt. Real Estate Mortgage Investment Conduit (REMIC)Real Estate Mortgage Investment Conduit (REMIC)A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. A financing vehicle created under the Tax Reform Act of 1986. Further SuggestionsremortgageMortgage payment protection insurance (MPPI) Interest only mortgages Veterans Administration (VA) mortgage Wrap Around Mortgage Stepped discount mortgage Council of Mortgage Lenders Collateralized mortgage obligation (CMO) Growing Equity Mortgage (GEM) mortgage Second Mortgage Mortgage debt Buy down mortgage Gnma (government National Mortgage Association) Options Chattel mortgage Alternative mortgage instruments General Mortgage Bond Mortgage broker Joint mortgage Stripped mortgage backed securities (SMBS) Tracker mortgages Guarantee mortgage Shared appreciation mortgage Open End Mortgage Renegotiable Rate Mortgage |
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