Pension backed mortgages

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Aisling L

Guest
We're trading up and our broker has suggested that we consider a pension-based mortgage. I already have a PRSA which he says is not suitable for a PBM. We like the premise, but have no idea whether this is a good idea. Obviously broker will get commission if I change my pension...
Any thoughts?
 
Had tax advice with tax specialist (mazars) who advised against them. That said www.fen.ie really plug them but I wonder are they more product sellers than advisors?
 
Had tax advice with tax specialist (mazars) who advised against them
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Can you expand on this? I would have thought that tax saving was one of the primary reasons to start a Pension backed mortgage.
 
Their point was to keep one's property portfolio separate from pension as I among others were over allocated to property. Suppose the mismatch of assets (using one asset class to pay down another) was another argument given.
 
Whilst pension backed mortgages can make good tax sense for the self employed and professionals such as doctors/dentists who have both PAYE and self employed income do bear in mind that pension plans pay commission on a similiar level to endowment policies. If it established that this is the right type of mortgage for you please agree to work on a fee basis with the commission reinvested into the pension plan otherwise you could lose up to 55% of the first years premiums.

Sarah

www.rea.ie
 
"I already have a PRSA which he says is not suitable for a PBM."

Oh yes it is. For this reason alone, I would ditch the advisor.
 
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