Wellbeck group

[vetran]

lets see if HMRC can find the worst offenders, why not raid their place of work in Westminster?

[warrenboon]

Mortgage principal

Mortgage principal refers to any of the borrowed sum still outstanding i.e. not including any interest, fees etc.

Can't imagine why HMRC would be offering to help, but HMRC do a lot of things that I wouldn't of imagined...

[Freamon]

Mortgage principal refers to any of the borrowed sum still outstanding i.e. not including any interest, fees etc.

Can't imagine why HMRC would be offering to help, but HMRC do a lot of things that I wouldn't of imagined...

It's marketing spiel. What they will actually propose is you should switch to an interest only mortgage and put the repayment element of your old mortgage payment into a pension, thus not paying income tax on it. The income tax not paid to HMRC can later be put towards your mortgage principal. Under certain circumstances this can be more tax efficient overall than a normal repayment mortgage (they claim). Obviously they make some nice commission on arranging the new mortgage and pension for you.

[eek]

It's marketing spiel. What they will actually propose is you should switch to an interest only mortgage and put the repayment element of your old mortgage payment into a pension, thus not paying income tax on it. The income tax not paid to HMRC can later be put towards your mortgage principal. Under certain circumstances this can be more tax efficient overall than a normal repayment mortgage (they claim). Obviously they make some nice commission on arranging the new mortgage and pension for you.

So basically they use the 25% tax free lump sum part of your pension to pay the mortgage off.

Personally I want the mortgage paid off asap and not have to pay 4% interest year on year till I retire.