Portal Portfolio, part of the Portal Group of companies, is offering the new loans in an arrangement with All Types of Mortgages (AToM) and will pay introducers 4% of the loan as commission.

Loans between £10,000 and £75,000 will be available to all full-time or self employed people in England and Wales, initially. The loan terms will be between five and 20 years and main residencies and buy-to-let properties will be accepted as security.

As for the pension, it is open to all investors, even if they’re not utilizing the borrowing facilities, it has a 4% net interest after all charges and must have a minimum amount of £10,000 – with no maximum.

The scheme is aimed at those who have a self-invested personal pension or SSAS pension and are 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 competitive rates. 

Portal has said that 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 team of pension IFAs.

The team will process the business for them on the strict understanding that the client remains exclusively tied to the introducing broker.

Commenting on the launch, 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.”

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.”