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.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. 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!

using a pension to buy a home

curious35
curious35 Posts: 5 Forumite
in House buying, renting & selling
Hi, first post. Hoping someone is able to offer any advice here.

I am looking to buy a house with the intention of renting it out. I have some money stashed away in a pension, I wanted to know if it is legal and possible to use that money to invest into an asset rather than it just sit there for the next 20+ years.

To clarify, I am 35. As I understand you can't unlock your pension until you are 55. Are there any legal ways round this? Such as taking a loan against your pension fund, or transferring it to something you can then use to put down a deposit?

Comments

  • lisyloo
    lisyloo Posts: 30,094 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You can certainly invest in all kinds of assets/funds within a pension wrapper rather than having the money "sit" there although I don't know of a way to invest in BTL.


    You'd be better off asking this on the pensions forum.
  • ACG
    ACG Posts: 24,750 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    You probably need a financial advisor. I think the term you are looking for is a SIPP.

    There are a lot of rules and regulations (and risks) around this. I am not qualified enough to advise on this sort of thing but I did run something similar past a financial advisor I know (albeit for a commercial property for our offices) and it can be done in theory.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dunstonh
    dunstonh Posts: 120,425 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Answered on the duplicate thread in the pensions section.

    short answer: no.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ACG
    ACG Posts: 24,750 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    dunstonh wrote: »
    Answered on the duplicate thread in the pensions section.

    short answer: no.

    Ah. Thats what I was told out the window then :rotfl:
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dunstonh
    dunstonh Posts: 120,425 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ACG wrote: »
    Ah. Thats what I was told out the window then :rotfl:

    Commercial property can be held (via a SIPP) but residential property cannot.

    It was proposed back in the early 2000s but after consultation, it was shelved as it was correctly deemed a very bad idea.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.5K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.5K Spending & Discounts
  • 245.5K Work, Benefits & Business
  • 601.4K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture