What is a pension mortgage?
A pension mortgage is specialist finance used by an eligible pension arrangement to help purchase an investment property. The pension arrangement, acting through its approved provider or trustee structure, owns the property for retirement-investment purposes. It is not owned personally by the pension member.
The pension may provide part of the purchase price from existing assets. A specialist lender may provide the balance where borrowing is permitted by the pension structure and accepted by the trustee and lender. Rent and sale proceeds return to the pension arrangement, while mortgage repayments and property costs are paid from pension resources.
The process
Review the pension
Confirm the pension type, current value, benefits, retirement date and provider rules.
Assess suitability
Consider diversification, liquidity, expected return, costs and the capacity to repay borrowing.
Confirm borrowing eligibility
Obtain an indicative lender assessment and confirm the proposed trustee structure is acceptable.
Select a property
Choose an arm’s-length investment property that meets lender, trustee and pension criteria.
Complete due diligence
Arrange legal review, valuation, survey, insurance and rental analysis.
Approval and completion
The trustee and lender complete their checks before the pension structure acquires the property.
Model a possible purchase
Use the calculator to estimate borrowing, repayments, costs and the liquidity reserve.
Open the calculator