Use pensions for mortgage?

Waterfall19

Any legitimate way of getting my hands on my pension for my mortgage.

My provider said I can either pay tax on liberation or have to evidence financial hardship...didn’t sound convincing

Zorillo

How old are you? If you're under 55 the short answer is 'no'.

AnotherJoe

Waterfall19 wrote: »

Any legitimate way of getting my hands on my pension for my mortgage.

My provider said I can either pay tax on liberation or have to evidence financial hardship...didn’t sound convincing

Certainly, once you are 55 not a problem.
Since financial hardship has nothing to do with being 55 or over, I've no idea where that bit came from though, but its rubbish. Utter rubbish.

Also, who is your "provider" who said this, and did you mean mortgage provider or pension provider?

TadleyBaggie

Zorillo wrote: »

How old are you?

36 if this post is anything to go by: https://forums.moneysavingexpert.com/discussion/5893897/renault-financial-services-lost-docs

Marcon

Nothing unlawful about liberating your pension if you are under 55. Just be sure you are happy to pay 55% tax on what HMRC classes as an 'unauthorised payment' + 'adviser' fees of around 50%...and yes, those numbers are about right: you could pay out more in tax and fees than the value of your pot. Your choice.

Waterfall19

Lol - very good. You have a good eye and memory.

Waterfall19

Zorillo wrote: »

How old are you? If you're under 55 the short answer is 'no'.

Dam! world has gone made, you could be homeless as cant afford mortgage repayments yet have a pension of £50k.

Mnd

Not really, the idea of a pension is to provide for your old age, not current spending

HappyHarry

Marcon wrote: »

Nothing unlawful about liberating your pension if you are under 55. Just be sure you are happy to pay 55% tax on what HMRC classes as an 'unauthorised payment' + 'adviser' fees of around 50%...and yes, those numbers are about right: you could pay out more in tax and fees than the value of your pot. Your choice.

Sorry, it is unlawful, it is legislated against in the Finance Act 2004 (Section 165 Pension rules Part 1, Rule1)

165 Pension rules
(1)These are the rules relating to the payment of pensions by a registered pension scheme to a member of the pension scheme (“the pension rules”).

Pension rule 1
No payment of pension may be made before the day on which the member reaches normal minimum pension age, unless the ill-health condition was met immediately before the member became entitled to a pension under the pension scheme."


The penalties for undertaking such action are also defined, but this doesn't make the action itself lawful.

Marcon

HappyHarry wrote: »

Sorry, it is unlawful, it is legislated against in the Finance Act 2004 (Section 165 Pension rules Part 1, Rule1)

'Accessing your pension before you’ve reached the age of 55 is not illegal but, unless you are covered by some very specific circumstances, is not advisable because there will be substantial charges from the company or third party acting for you and this is seen as an unauthorised payment by HMRC and you will be hit with a 55% tax bill on the amount you withdraw.'

Source: https://www.moneyadviceservice.org.uk/en/articles/pension-release-or-pension-unlocking

AnotherJoe

Since the OP hasn't even defined what he means by "use pension for mortage" this is all somewhat moot. "Pension mortgages" used to be a big thing at one time for example.