You make two payments per month. One to the lender to repay the interest on your borrowings and another into a personal pension plan. The aim is to build up your pension fund sufficiently to repay the loan and to provide you with a retirement income.
ADVANTAGES: Has tax advantages, as the contributions you make to the pension plan attract tax relief at the highest rate of tax you pay.
DISADVANTAGES: You must ensure your pension is well funded to ensure you have sufficient to repay your loan and provide for your retirement. The tax free lump sum which is paid on retirement is used to repay the mortgage loan, but there is no guarantee that there will be sufficient funds to do so.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgages you can choose how we are paid. We can either accept commission from the lender or, you can choose to pay on a fee basis. Should you choose to pay a fee we will usually charge £500. We can also arrange a combination of these options.
01604 497566
Suite S4
Moulton Park
Northamptonshire
NN3 6AQ
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| 5 Point Financial Planning Ltd is An Appointed Representative of Sesame Ltd., which is authorised and regulated by the Financial Services Authority Sesame Ltd is entered on the FSA register (www.fsa.gov.uk/register/) under reference 150427 |
| The FSA do not regulate National savings products and some forms of mortgage and tax planning. The advice and / or guidance contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. |