The new loans are being distributed exclusively through All Types of Mortgages and will pay introducers 4% of the loan as commission.
The scheme is aimed at anyone who has a self-invested personal pension or SSAS pension and is looking for a loan. By collectively investing in an independent pension fund, the borrowers, and any other investors looking for a guaranteed 4% return, provide the facilities to allow Portal Portfolio to offer secured loans at market leading rates.
Mortgage brokers who wish to recommend the secured loan, but are not qualified to offer pension or investment advice, can still earn 4% and hand over the regulated aspects to a dedicated team of pension IFAs, who will process the business for them on the strict understanding that the client remains exclusively tied to the introducing broker.
Tim Moore, managing director of Portal Portfolio, said: “This is a very exciting product as it allows both the investor and the borrower to benefit from highly attractive rates.
“Obviously it won’t be appropriate for everyone, but for those people with sizeable investments in their pension, who are also looking to borrow money for anything from commercial reasons to home improvements it’s particularly attractive.
“At 4% the pension fund offers very good returns, which are completely ring-fenced so we expect the concept of collective funding a lending facility to appeal to both the borrowers and broader individual and institutional investors.”
And Vic Jannels, group chairman of AToM, added: “AToM is well known for its ability to bring specialist products to market and this is no exception.
“The product has a very clearly defined market and will appeal to the tens of thousands of professional people who may have significant sums tied up in both their property and pension schemes.
“The collective nature of this investment allows borrowers to achieve a very good return on their pension and at the same time borrow at extremely competitive rates.”
About the loans
Amounts: £10,000 - £75,000
Term: 5 – 20 years
Employment: Full time or self-employed
Location: England and Wales
Properties accepted: Main residences and buy-to-let /investment properties
About the pension
Interest: 4% net (after all charges)
Amounts: £10,000 – no maximum
Term: 10-years plus
Investors: All investors welcome - do not have to be utilising borrowing facilities
