Using Pension for property purchase

FatherAbraham

bradsaw_31 wrote: »

I am going through a split with partner and we are looking to sell our house and move on. i will most likely be left with approx £70000 which is inadequate to buy a new property. My problem is i am almost 55 on an income of less than £10000,so would be very difficult to get even a small mortgage. What i am considering is taking the whole of my pension pot of £75000,i have been told that i will be taxed approx £15000,leaving £60000.This would leave me with £130000 in total. Now obviously i know this will leave me without a pension but i really don't see any other option? What would other people do in my situation?

Marry, pooling resources.

Warmest regards,
FA

chiefie

Is there any way you can increase your income so you don't have to touch the pension ? I agree with atush - take your lump sum only and let your pension continue to grow. If/ when you finish work you will be taxed less on withdrawals. I suppose the issue hee is timing

Freecall

gadgetmind wrote: »

Given how banks are being fined for farting in the wrong key.........

That's what I like about MSE, you get such a sophisticated class of post.

agarnett

me wrote:

Is there no lender in UK that is on the ball sufficiently to lend against new drawdown?

gadgetmind wrote: »

Given how banks are being fined for farting in the wrong key, innovative products aren't top of their agenda.

What would be innovative about making a very basic lending decision of the type that has been made for centuries i.e. someone with the ability to pay (and probably more securely so than the average UK employee who could be fired tomorrow) is in the market for a loan on a marketable property. Banks elsewhere are still making decisions like that. Why not in the UK? With all their preferred farting around are they no longer in the lending business then?