Pension Loans

stateofmind

Hi all

I am in the process of trying to source some finance (around 5k), however due to a rather poor credit profile I can't get credit from the usual means - at least not unless I am prepared to pay a ridiculous APR.

I have been reading a bit about these pension loans but I'm not really sure how they work. I have a private pension at work, via Friends Provident I believe, and around 300 a month goes into this, and I think I have around 12k in there.

Does anyone have any ideas how these work, or any reputable companies to approach for advice? I understand you can usually borrow between 25 and 50% of the value of your fund, which would be perfect for me.

I need to get things moving rather quickly as the OH goes off on maternity in a month or so and I would like to release some of the money tied up in this pension now.

Any advice greatly appreciated!

Peelerfart

Would perhaps be better posted on the pensions board,but from what limited knowledge I have gathered from visits to that board is, don't do it.

It would work out very,very expensive,but please check it.

As with most things,I'm no expert

StuTheDon

I think you need to go on the Debt Free Wannabe board and get some advice from those guys. The pension thing is an absolute no no - you will pay an unbelievable amount for it.

You've clearly got debt issues, and seem to have some pay day loans as well. There is no easy fix for this, you need to list your debts by highest APR and start throwing everything at the highest.

The rates being offered are unbelievable because you have not stuck to previously agreed payment terms. A hard fact, but one you now need to resolve properly.

jonesMUFCforever

How old are you?
If you are not of a pensionable age this will be a no no.

Apples2

You say "around £300 a Month goes into this".

I take it you give about £100 and the Company give the other £200.
So you are trying to borrow money your company has been providing into your Pension pot??

Lunacy, sheer lunacy. The idea of a madman desperate for grabbing cash.

Forget the whole idea, you will get your pension when it is due, it isn't your safety savings pot to dip into at will.

molerat

Most of these schemes are a scam and against HMRC regulations. The remainder of your pension fund will be invested in strange foreign schemes with no regulation and will result in most of your pension disappearing. When HMRC find out you will have to pay tax at a punitive rate on the original fund amount which has disappeared into the scammers pockets.

stateofmind

Thanks for the replies, well the useful ones.

Tell me Apples, what's the weather like up there on your high horse?

You are everything thats wrong with this site, trolling threads just to write negative comments. I simply asked a question, it's something I was merely looking into that's all.

You have no idea about my personal circumstances or who pays what into my pension.

Is it so wrong to simply ask the question on here? From the sensible advice given, it's obviously not a good idea to pursue this which I won't do, but you have absolutely no right to call me 'a madman desperately grabbing for cash'

dealer_wins

molerat wrote: »

Most of these schemes are a scam and against HMRC regulations. The remainder of your pension fund will be invested in strange foreign schemes with no regulation and will result in most of your pension disappearing. When HMRC find out you will have to pay tax at a punitive rate on the original fund amount which has disappeared into the scammers pockets.

What complete nonsense!!!

DCFC79

stateofmind wrote: »

Thanks for the replies, well the useful ones.

Tell me Apples, what's the weather like up there on your high horse?

You are everything thats wrong with this site, trolling threads just to write negative comments. I simply asked a question, it's something I was merely looking into that's all.

You have no idea about my personal circumstances or who pays what into my pension.

Is it so wrong to simply ask the question on here? From the sensible advice given, it's obviously not a good idea to pursue this which I won't do, but you have absolutely no right to call me 'a madman desperately grabbing for cash'

Nothing wrong with Apples reply, you didnt need to respond to it, she tells it like it is,

stateofmind

She had no reason to reply to my post with those comments.

This forum is meant for advice from people from all walks of life all in differing circumstances and not for people to make assumptions or write comments that others may find offensive.

There was just no need for it that's all I'm saying

BoGoF

Trust me.....taking the high APR loan would be far better for your long term financial wellbeing