Using SIPP to pay off mortgage

ukonlineshopping

Any ideas about how I can get hold of a small pension plan funds and pay part off the mortgage. i heard about a government proposal of this but looking for ideas

Thrugelmir

ukonlineshopping wrote: »

Any ideas about how I can get hold of a small pension plan funds

You need to save into a pension plan as an initial step.

Unsure as to precisely what your question is.

dunstonh

ukonlineshopping wrote: »

Any ideas about how I can get hold of a small pension plan funds and pay part off the mortgage. i heard about a government proposal of this but looking for ideas

There has been no change in legislation. No known plans to change it either in that respect.

warwicktiger

There was a proposal (around 2005?) to allow your own residence to be included in your SIPP but this was pulled and never went into legislation.

There is nothing to stop you investing in a Personal Pension, Stakeholder or SIPP and using the tax free cash to pay off a mortgage in legislation, provided the mortgagor will accept the pension plan as a repayment vehicle.

Thrugelmir

warwicktiger wrote: »

There is nothing to stop you investing in a Personal Pension, Stakeholder or SIPP and using the tax free cash to pay off a mortgage in legislation, provided the mortgagor will accept the pension plan as a repayment vehicle.

Building up a sufficiently large enough fund may be a challenge depending on the size of the mortgage to be repaid.