25% Tax Free Pension Cash at age 55

dtaylor84

lctcb wrote: »

Is it your view that an upcoming tax free pension payment cannot be used as collateral for short term borrowing?

It is absolutely illegal to use it as collateral for a secured loan.

If it's an unsecured loan, there is no collateral by definition. So, no it's not possible.

You may be able to get an unsecured loan, and it may or may not be legal for the lender to take into account the existence of your pension when deciding to give you a loan. But as it's unsecured, it can't be collateral, and there's nothing stopping you spending the money on something else when you get it, so they may not want to anyway.

Thrugelmir

lctcb wrote: »

Is it your view that an upcoming tax free pension payment cannot be used as collateral for short term borrowing?

There's no legal charge that can placed on the pension. So the lender would have to work on trust alone. With the change of attitude in banking, highly unlikely.