A Pension Mortgage combines the tax advantages of a pension with the tax relief available on mortgage interest to create a very tax efficient way to buy property.   Changes in pension legislation in 1999 afforded the self employed and directors with more than a 5% shareholding in their company a more tax-efficient way of financing property investment. You pay back only the interest on the borrowings each year and at the same time take out a Pension Plan into which you make regular payments.   The aim is that at the end of the mortgage term your pension will have grown sufficiently to pay off your capital.   A Pension Mortgage can be used to finance any property for investment purposes.