Mortgage Industry News

← Back

Use a cheap mortgage to fund pension property

Date: Tue, 16 Aug 2005

Many Britons could take advantage of cheap mortgage deals to fund the purchase of pension properties.

New regulations aimed at making it easier to use property as part of a retirement plan are due to come in to force from April next year and are likely to boost the mortgage market for second home purchases.

The changes in legislation will mean that investors in both commercial and residential property will be eligible for tax relief and, according to research by the Property Investor Show, around £6.5 billion could be poured into the market.

The growing competition in the home loan market and the recent cut in interest rates means that many people could fund their retirement by taking advantage of the cheap mortgages on offer.

"The changes on A-Day are going to give a lot more flexibility to pension investment," said Nick Clark, managing director of the Property Investor Show.

"The housing market has long been attractive to investors and being able to use self-invested pension plans to buy property is likely to encourage more people to look at investing more substantially in their pensions, and benefit more from doing so," he added.


© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.