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Close plans mortgage deal to mitigate IHT

Close Mortgages is planning a mortgage which can be used to mitigate inheritance tax.

The firm is gauging demand for the product, which would enable homeowners to borrow the difference between the IHT threshold and the value of their property and put the funds into a tax-free investment vehicle so that IHT is avoided.

Close says the product would be an industry first and is one of a raft of new ideas it is looking into, including mortgages for auctioned properties, self-build homes and prop- erty portfolios. It has no current plans to expand its distribution beyond its Mortgage Intelligence network.

Close Mortgages chairman Bob Golden says: “We are looking to fill in product holes that other lenders are not selling.”

London & Country head of communications David Hollingworth says: “The challenge is to bundle two concepts together so they are better value than doing them separately.”

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