Pension Plan Mortgage

A pension plan mortgage is a interest-only mortgage by which the borrower pays monthly installments consisting solely of the interest owed for the capital sum. The provision for the payment of the capital sum borrowed, for this type of mortgage, comes in the form of a pension plan.

A pension plan has tax relief advantages just like an ISA account with the significant difference that you cannot make withdrawals in the initial period.
Not being able to make withdrawals may be to your advantage if you are not a disciplined saver.

The danger of this system is that since your savings will be invested on the stock market, your investment may not do as well as you hoped and you might find yourself short of the capital sum at the end of the mortgage term.