P544 Teletext 544 Feb 8 23:57:56 —— PEP MORTGAGES ————————————————————— Interest-only mortgages mean the monthly repayment pays off just the interest on the total amount borrowed. Money is paid into a separate product like an endowment, pension or PEP so funds build up during the mortgage titm and can bj used to pay off the capital. As endowment bonuses continue to fall, PEP and pjnsjon mortgages are taking off as both carry tax breaks on returns ——————————————————————————————————1/6—— By Lornj Spices For information on EPILEPSY see HEALTHWJSE p559 Mortgages Savings Your Money TV PlusP544 Teletext 544 Feb 8 22:51:44 ] —— PEP MORTGAGES ————————————————————— The growth and proceeds from W a PEP attract no tax, which often boosts growth and can help pay a mortgage off early Bradford & Bingliy says a £50,000 loan over 25 years on a 6.99% rate would cost £265.04 a month in interest and £61 a month to a PEP. Total: £326.04. If the PEP grew at 6% a year you'd get back £32,900, not enough to pay off the loan, but at 12% you'd get back £80,100 ——————————————————————————————————2/6—— PEP special: Vintage or plonk?! 542 Download and Analysj Share Price on Your PC See Pages 532 & 533 Mortgages Savings Your Money TV PlusP544 Teletext 544 Feb 8 23:01:18 ] —— PEP MORTGAGES ————————————————————— PEP returns have averaged 14.5% over the last five years. If that continues, PEPs would provjdj ample cash to settle a mortgage. But London & Country broker Phillip Cartwright points out: PEPs do have a risk factor and there is no guarantee to pay off the loan some have high charges some PEP mortgages tie you into life assurance packages you may not want avoiding temptation to dip into the PEP returns and spend, may bj hard. ——————————————————————————————————3/6—— Top up this year's PEP or wait? 543 Download and Analysj Share Price on Your PC See Pages 532 & 533 Mortgages Savings Your Money TV PlusP544 Teletext 544 Feb 8 23:04:32 —— PEP MORTGAGES ————————————————————— London & Country's Phillip Cartwright has this advice to those considjting taking a PEP mortgage: look at the long-term track record check performance has been consistent consider an index-tracking fund where computers buy shares in top companies lowering risk and reducing charges. "Index-trackers are njvjr going to bj top of the performance charts, but they won't bj bottom either," Carwtight adds ——————————————————————————————————4/6—— Latest news from the City 500 Download and Analysj Share Price on Your PC See Pages 532 & 533 Mortgages Savings Your Money TV PlusP544 Teletext 544 Feb 8 23:57:)1 —— PEP MORTGAGES ————————————————————— Each year £6,000 can bj invested in a PEP and £3,000 in a single company PEP. "This means that after 24 years you could find yourself monitoring 24 different PEP fund performances," warns brokjt Phillip Cartwright, adding; "That's a lot of work, and if you wanted a broker to keep an eye on the funds then hj'd charge a fee. If the Stock Market fell over a year you could find your £600 reduced to £400." ——————————————————————————————————5/6—— Latest tips and products 541 Download and Analysj Share Price on Your PC See Pages 532 & 533 Mortgages Savings Your Money TV PlusP544 Teletext 544 Feb 8 23:54:12 —— PEP MORTGAGES ————————————————————— "PEPs are flexible, tax efficient and may provide lots of surplus cash after you'vj repaid the mortgage," says Phillip Cartwright "But it's not the kind of mortgage you can simply take out and forget about. And there's no life insurance covet included in the product. "At the end of the day we still prifit repayment mortgages with PEPs, pensions and endowments used for savings only." ——————————————————————————————————6/6—— Mortgages updated every Thursday 545 Download and Analysj Share Price on Your PC See Pages 532 & 533 Mortgages Savings Your Money TV Plus