Can I get a loan secured against a pension fund ?

Sid_Cowans

I have a works final salary pension due at the beginning of March 2015 which includes a c.£70,000 tax free lump sum.

Basically, I'd like to borrow c.£5,000 now using that fund/pension quote as security ..... is that possible ?

I currently have a Debt Management Plan with Stepchange so all other loans are non-starters due to credit checks.

Its frustrating to be this close to money but unable to reach it and use it for urgent current needs. Any ideas ?????

chambta

I don't think you'll find much success I'm afraid.

Not through the traditional sources that I presume you seek, anyway.

michael1983l

Sid_Cowans wrote: »

I have a works final salary pension due at the beginning of March 2015 which includes a c.£70,000 tax free lump sum.

Basically, I'd like to borrow c.£5,000 now using that fund/pension quote as security ..... is that possible ?

I currently have a Debt Management Plan with Stepchange so all other loans are non-starters due to credit checks.

Its frustrating to be this close to money but unable to reach it and use it for urgent current needs. Any ideas ?????

Taking out more credit whilst in a DMP will void your DMP as the creditors will not be happy you are taking other loans whilst not paying them back your contracted amount.

Tixy

It can be possible to get a bridging loan using a pension lump sum as evidence of ability to repay. Although unlikely to be possible for as little as £5,000 and they are generally relatively expensive.
However bridging loans are still subject to a credit check which if you are on a DMP you will likely fail.

Were you going to use the funds to repay the debts within the DMP? if not then as stated above it is a condition of your DMP that you do not take on any more borrowing until your debts are repaid.

If it was not to repay the DMP and if it is for a really 'urgent current need' then it may be possible to reduce your DMP payments down to token payments for a while which may help you out financially.