We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Use pensions for mortgage?
Comments
-
Waterfall19 wrote: »Dam! world has gone made, you could be homeless as cant afford mortgage repayments yet have a pension of £50k.
If you wanted money for 'not your retirement' it shouldn't really be in stuff intended for 'your retirement.' This isn't really a new concept...
See also emergency savings, and savings buffer, which you should really concentrate on before your pension...Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
You could plan to use your pension to repay your mortgage, like I did back in the mid 90's. All you had to do was throw enough into another pension so that when you hit retirement age the 25% TFLS was sufficiently large to repay it. This would also provide you with a decent additional (to your existing private / company pension) 75% pot to live off. Of course where this scored over endowment is that the government effectively gave you 20% towards your mortgage repayment. However it did mean paying your mortgage interest until 55, which is probably the norm now! No riskier than endowment in my view although I'm not sure, in retrospect, if this was a better strategy than repayment. I don't see why we couldn't do the same now if interest free mortgages were given the nod again.0
-
I find it hard to believe that a mortgage provider would cite these options for someone having trouble repaying their mortgage ...... frightening!0
-
I believe that the highlighted clause applies to 401(K) pension schemes in the US. No such caveat applies to any type of pension in the UK.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 convincing0 -
For the interested: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-hardship-distributionsDairyQueen wrote: »I believe that the highlighted clause applies to 401(K) pension schemes in the US.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards