This mortgage product is designed for individuals with a Self Invested Personal Pension (SIPP) who may not have a traditional income source but wish to secure a mortgage.
We work with lenders that can use 90% of your SIPP’s value and divide it by the mortgage term (e.g., 15 years) to assess your affordability - even if you haven’t yet taken tax-free-cash.
Your SIPP remains untouched, allowing you to keep your pension invested while leveraging towards your mortgage affordability.
Access funds for property purchase without crystallising your pension, ensuring tax efficiency and continued growth.
Lenders offer favourable mortgage rates as the pension provides strong financial backing.
We recently worked with a 61-year-old client who had been living in Spain but wanted to return to the UK. His main challenge was securing a mortgage as he had no sustainable income. However, he had a UK SIPP valued at £1.3 million, which had not yet been accessed.
As his broker, we guided him through the process of leveraging his pension for mortgage affordability. The lender assessed 90% of his SIPP’s value, resulting in an eligible amount of £1,170,000. Divided over a 10-year mortgage term, this provided an assessable annual income of £117,000, which was sufficient for mortgage approval.
With our expertise, the client secured a mortgage without needing to draw down his pension, keeping his investments intact. This solution enabled him to purchase a UK home while preserving his retirement fund’s growth potential. Thanks to this approach, he transitioned back to the UK smoothly without financial strain.
There are very few products on the market that allow for this level of flexibility regarding leveraging your SIPP funds towards a mortgage. With SIPP income being taxable after the 25% tax-free-cash, this product can form part of a broader, long-term financial plan to secure a new home by utilising the wealth in your pension.
If you're interested in learning more about this or other similar products, enquire now and speak to a broker and you may find ways to maximise your borrowing power.
If you are looking to get a mortgage in your later years, we recommend you speak to an expert who will listen to your specific circumstances and advise you on the best course of action.
At Clifton Private Finance, our team of mortgage advisors and the expert partners we work with are dedicated specialists with an in-depth understanding of the finer nuances of equity release mortgages, pension-backed mortgages and specialist retirement products.
We are here to help you find the right deals, obtain the best rates, feel confident and secure about the process, and enjoy a smooth experience when getting your mortgage.
Contact us today to ask any questions and get some personal help.
Still unsure? Call one of our experts on 0117 205 4833 or book a consultation
