Don't fall into traps

Dear Editor, It has come to our attention in recent months that stricter borrowing limits imposed last year on self invested personal pensions are having the unintended consequence of trapping some investors with operators who no longer meet their needs. Before A-Day a SIPP investor buying a commercial property, for instance, could borrow up to 75% of its value. The rules changed on 6 April 2006 to limit borrowing to 50% of the SIPP fund. To buy a property worth £450,000, a pre-A Day investor would therefore have needed a SIPP fund of £112,500. To buy the same value property under the n...