secured loan

BRIGHTHOPE

I don't have a property against which I could secure a loan, however, I do have an occupational pension which will pay out in the region of £100,000 in 4 years time. However, I need about £25,000 to tide me over and I wonder if anyone out there knows if I can secure such a loan against my pension.

Debt_Free_Chick

BRIGHTHOPE wrote:

I don't have a property against which I could secure a loan, however, I do have an occupational pension which will pay out in the region of £100,000 in 4 years time. However, I need about £25,000 to tide me over and I wonder if anyone out there knows if I can secure such a loan against my pension.

No - the pensions (tax) legislation specifically excludes this. However, some lenders may take the pension/cash payment into account when they assess your ability to repay the loan.

Bear in mind that you'll need to make repayments on the loan over the next four years, so be sure you can afford them. Also, remember that your home is at risk with a secured loan if you fail to meet the repayments.

If you give us some more information about what you need the money for, we may be able to offer some other suggestions.