Should you use your pension to pay off your mortgage?

Close your eyes and imagine receiving a large amount of money. What do you see? What does it buy? The exact amount will dictate what is possible, of course. But, many would pay their mortgage off before dreaming of shiny new cars, skiing holidays, or for the more frugal, maybe a new… toaster? Whatever the money will be spent on, repaying your mortgage is often the first thing on people’s minds. And for good reason; those monthly mortgage payments are often the main reason people can’t give up work early (or at all, ...

Mortgages: Are you about to be frozen out of the mortgage market?

Are you about to be frozen out of the mortgage marketA new report has shown that one group, traditionally thought to be nearing the peak of their earnings potential, are at risk of being frozen out of the mortgage market. The problem is due to new rules, known as the Mortgage Market Review (MMR) which was introduced by the Financial Conduct Authority (FCA) earlier this year. The aim of the new rules was to ensure that borrowers could repay the money lent to them. But one of the effects has been to ...

Guest blog: Give your SIPP a boost with offset lending

AstuteIn his first guest blog for Investment Sense, founder of Astute Trustee Services, Andy McLaughlin, looks at a different type of SIPP lending: If you are like most people in this country you started thinking about your pension way too late in life, which is hardly surprising with all those commitments – mortgage, kids, university fees, weddings and not to forget the ageing parents who are increasingly becoming dependant on you to meet their living costs. The problem And now, just when you have good income or corporate profits and are reaching the ...

Mortgages: Banks warned against pushing up interest rates

iStock_000004583777XSmallThe Financial Conduct Authority (FCA) has warned banks and building societies that changing the terms and conditions on tracker mortgages could break consumer protection laws. These types of loan are known as a tracker mortgage, because the interest rate charged is designed to only change in line with the rate it tracks, usually the Bank of England base rate. However, over the past few months, two high profile lenders, the Bank of Ireland and West Bromwich Building Society, have taken advantage of obscure ...