Setting up a PRSA/Pension Mortgage

Do I need to use a single institution to structure a Pension Mortgage?

Here's the background...

I'm self-employed; my income fluctuates. I have approval for an interest-only mortgage to purchase an investment property near University of Limerick.

I plan to purchase a PRSA of approx 20k (through a broker unrelated to the institution providing the mortgage) and then continue to make the maximum lump sum contributions (25%) for the forseeable future.

I already have sufficient Term Life protection to cover the mortgage.

Assuming I accumulate sufficient funds to use my tax-free 25% lump sum to pay off the principal at 60, is there anything else I need to put in place to make this acceptable to the Revenue?

dod

The Pension Mortgage involves two separate structures:
- the interest only loan
- the pension plan
If you already have approval for the interest only loan, then the lender should accept the pension plan you propose. But the lender may want to review the arrangement to see that the estimated fund is likely to repay the loan. But there is no requirement that you put both arrangements in place with the same institution.

Thanks Conan. Can the property be held jointly or must it be held solely by the pension holder?

dod