Pension Mortgage Calculator

Tax relief is available on pension contributions effectively making a £100 contribution cost only £80 for a basic rate tax payer or £60 for a higher rate tax payer (see here for limits on tax relief). Pensions grow tax efficiently and at retirement you may take a tax free lump sum of up to 25% of the pension value which could be used to pay off some or all of your mortgage

A pension is a very tax efficient way of repaying a mortgage but, as with all investments, you should monitor its performance regularly and be prepared to make adjustments, including changes to the funds in which it is invested or the amount that you save.

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Pension Calculator
 
Mortgage Interest Rate
Loan Amount
Date of Birth
Retirement Age
   
 
Results
Mortgage Term (yrs): <%response.write(formatnumber(termmonths/12,2))%>
Your Pension Contribution: <%response.write(formatcurrency(your_contribution))%>
Interest to lender at <%response.write(formatpercent(mi,2))%> <%response.write(formatcurrency(mortgage_interest))%>
Cost of Pension Mortgage <%response.write(formatcurrency(your_contribution+mortgage_interest))%>
The cost above is calculated to be the same as a repayment mortgage - this is unlikely to be enough to pay off your mortgage, so you need to pay more. You will receive an income for the rest of your life too! How much more can you pay?
Additional Monthly Payment
Include Existing Pensions
 
   
Your pension will pay a tax free lump sum (see graph on left), if the blue bar is bigger than the red bar then you have tax free cash spare after paying off the mortgage (click on a bar to reveal figures). In addition to the tax free lump sum you will receive a pension for the rest of your life (see graph on right), this is assumed to increase by 3%pa.



graph here
results returned after
 pressing calculate



graph here
results returned after
 pressing calculate
 
Investment returns are not guaranteed and could be higher or lower than the rates projected. Inflation will reduce what your money can buy in the future. Higher rate tax payers claim the difference between basic rate tax relief and higher rate tax relief through their tax return. Interest rates can fluctuate and this will affect payments to the lender. All pension payments are assumed to attract tax relief at 20%, this may not be the case if you earn less than £2,880pa.