Thousands with ‘pension mortgages’ could be in for a nasty shock

iStock_000008866095_ExtraSmallNew figures from the British Bankers Association (BBA) show thousands of people are planning to use their pension to repay their mortgage. But, possible future changes to pension legislation, could leave these borrowers with no way of repaying their mortgage, potentially causing financial hardship in retirement. The BBA’s figures show just over 2.5 million interest-only mortgages outstanding in 2012, down from over 3.5 million at the height of the housing boom in 2007. However, the number of pension mortgages has ...