A major bank has on offer a pension mortgage. This could be very valuable for higher rate taxpayers. It works like the old endowment policy,but the difference is that you get 40% tax relief on your contributions. The pension fund grows practically tax free. At the end of the mortgage term you can use the tax free element to pay off the capital borrowed.
If you take a Capital & Interest mortgage out for £250,000 over 25 years at 3.2%. The total cost per month would be £1,211. If you take it out on an interest only basis the cost would be £666 per month. If you put the saving of £545 into a pension the tax relief would gross this up to £908 per month. This would amount to a pension fund of £550,000. This on an annual return of 5%. This is of course on top of the pension you already have. You can also claim tax relief on the life insurance to cover the mortgage. Find out more https://mortgageoptionsni.co.uk/contact-us/