Borrowing

A SIPP may borrow to assist with the purchase of a property.  The amount that can be borrowed is 50% of net scheme assets.

No additional borrowing is available in respect of VAT.

It is possible to purchase a property entirely from borrowing subject to any conditions set by the lender.  The lender will require a first security over the property and possibly other assets of the member’s scheme.

Any existing borrowing on properties previously purchased through the SIPP must be taken into account when calculating the net scheme assets.