Bear in mind, if your clients wait to receive their pension beyond age 55, most will be taxed. Using this scheme can allow them to access cash now (potentially invest in their own business instead of a managed fund) and consider alternative tax strategies.
This scheme is more attractive and accessible to more of your clients. If you have not yet considered using a scheme such as this, it’s worth reading on so you have the concept clear in your mind should the opportunity arise.
If you want more detail we can arrange for someone to explain it to you – call 01902 585052
Features • This is a pension–led business funding product that complies with HMRC rules and FSA requirements • There are no initial costs for your client to find out how this scheme might benefit their business • 100% of the pension(s) fund(s) can be transferred however any loan or lease facility will require a residual pension balance to be in place at all times • No age limit • Funds can be used for many different purposes, for example:
2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:
Mortgages and Remortgages
£80,000 over 240 months at an APRC OF 4.3% and a discounted variable annual interest rate for two years of 2.12% at £408.99 per month followed by 36 payments of £475.59 and 180 payments of £509.44. The total charge for credit is £39,873 which includes a £995 broker / processing fee and £125 application fee. Total repayable £119,873.
Secured / Second Charge Loans
£63,000 over 228 months at an APRC OF 6.1% and an annual interest rate of 5.39% (Fixed for five years – variable thereafter) would be £463.09 per month, total charge for credit is £42,584.52 which includes a £2,690 broker / processing fee. Total repayable £105,584.52.
£4,000 over 36 months at an APR OF 49.9% (fixed) and an annual interest rate of 49.9% would be £216.21, total charge for credit is £3,783.56. Total repayable £7,783.56.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Written terms available on request. Loans are subject to affordability status and available to UK residents aged 18 or over. Promise Money is a trading style of Promise Solutions Ltd. Promise Solutions is a broker offering products which represent the whole of the specialist second mortgage market and is authorised and regulated by the Financial Conduct Authority – Number 681423.
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