Personal Pension Plan

Personal pension plans allow you to combine your mortgage investment vehicle with a personal pension. This is useful if you are self-employed or not part of a company pension plan. As with an ISA Mortgage a personal pension is a tax efficient way to invest resulting in a lump sum to pay off the loan capital at the end of the mortgage term. As well as repaying the mortgage you also get a retirement income after the mortgage is repaid. However, by using the personal pension plan to repay the mortgage you will have a smaller retirement income.

With most personal pension plans you will have to pay mortgage protection and probably life insurance. It is also worth noting that with a personal pension plan mortgage the benefits cannot be received until you retire from your occupation.

Other investment vehicles:

Personal Pension Plan
Endowment
ISA - Individual Savings Account