Tax Free Cash Sum - Mortgages

This is the part of a pension mortgage which is used to repay the mortgage loan at retirement.

Usually lenders will set a ceiling on the amount of tax free cash that is used to repay the mortgage of no more than 70 or 80%.

Alternatively, the lender may base repayment of the mortgage amount on the full tax-free cash sum, and in this case, a lower rate of growth is assumed in the pension fund.

See also: Moneyextra's Mortgage Centre and Mortgage comparison Service for the latest facts and figures.

Last Updated: April 2008 © Moneyextra.com

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