What is a Pension Mortgage

A pension mortgage acts in exactly the same way as an Endowment Mortgage , except that the loan is repaid in one amount at the end of the loan period from a lump sum payment from a personal pension scheme on retirement of the borrower.  The pension scheme will also of course, provide pension payments for the rest of the borrowers life.  During the loan the borrower makes monthly repayments covering interest on the loan and also pension contributions.  Pension mortgages are popular with self employed and people with private pensions because they enable the borrower to save on tax.