thinking about catching up …

Can one, these days, get a mortgage on something like the following terms?  Since I’ve lost the tax-flexibility of self-employment, I need to find some way to avoid getting the worst of all worlds.

  • Regular payments of interest only.
  • Tax-efficient saving to repay, using a self-invested personal pension (augmented by my company pension if necessary).
  • Repayment on taking my pension, using the tax-free lump sum.
  • Offset account to enable early partial payments on a flexible basis.
  • Offset amount to include, or at least account for, existing ISA savings.
  • Flexible final repayment date.

Not, of course, that I want a mortgage in a falling market.  Except … property available to rent in the UK leaves something to be desired, and I’m not getting any younger.

(I expect the “M” word will collect spambots to this article, like flies to a corpse.  So any comment that shows no sign of having read my words will not be given the benefit of the doubt).

Posted on March 20, 2008, in housing, tax, uk. Bookmark the permalink. 1 Comment.

  1. Have you looked at http://www.moneyfacts.co.uk? Their site will give you an idea of the sort of products on offer, and which institutions are worth looking at.

    I think you should be able to get most, if not all, of what you’re looking for. Using a pension lump sum and/or ISAs to discharge the capital are more or less interchangeable so shouldn’t be a problem. The lender will simply want to know that you have some appropriate means of settling the balance when it falls due and, I guess, will want some kind of legal charge or similar to make sure you don’t just take the money and run.

    Beware of excessive charges for early redemption and other restrictions on flexibility. Make sure you can opt to refinance should it suit you, without onerous penalties or conditions.

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