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Pension pot for a mortgage deposit

WJA
WJA Posts: 1 Newbie
in House buying, renting & selling
Hey

I have been told you can use your pension pot as a deposit on a house if you are a first time buyer.

Just wondered if anyone had any experience with this & if it’s possible or not

Thanks in advance

Comments

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Who told you that?
    Slap them with a large and several day old stinking fish.
    It's rubbish.
  • middleclassbutpoor
    middleclassbutpoor Posts: 774 Forumite
    Sixth Anniversary 500 Posts Name Dropper Photogenic
    The LISA can be used for either pension or deposit for a house. Maybe this is what they have been told and misunderstood?
  • Caz3121
    Caz3121 Posts: 15,889 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Are you over 55? Do you mean taking 25% out the pot at 55 to use as deposit?
  • Silvertabby
    Silvertabby Posts: 10,479 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Australia and Canada now allow access to pension funds early for the purpose of house purchase. Which is why pension fund transfers to these Countries have now been banned by HMRC because this would be classed as an unathorised payment under UK law.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Take out anything over 25% and you'll be taxed on it at your marginal rate.
    No free lunch, and no free laptop ;)
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    macman wrote: »
    Take out anything over 25% and you'll be taxed on it at your marginal rate.
    Odds are, as a FTB, the OP is not over 55 and so can't take any money out anyway.
    And and even if they were and could, taking out 25% has got nothing to do with any specific concession of the sort they describe.
This discussion has been closed.
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