Future Pension Pot to pay of Mortgage

Fast_Muchly

Hi 
     Can anyone answer me this please my wife has come into some money from the loss of her mum ( not  a lot but enough ) but im 53 and in 2 years I can actually access if I want to my private pensions lump sum  although I would have sooner left this till im around 57/58 . 
What I want to ask is can we if we look to move to that nice bungalow with a tiny bit of land etc etc  use what I will get from my 25% tax free lump sum that I could access in 2 years for a mortgage if I can show proof of what I will get in 2 years therefore paying it off straight away .
Suppose im asking will a bank be willing to issue a mortgage against that and not count income ( as im on quite a low income now ) . Our mortgage that is remaining on our current home is only £11000 with around 5 years to run .

So is this doable and would it be tax free as the pension lump sum does come tax free for the first 25% .
Also sorry in advance wasn't sure if I should have put this in the pensions bit or mortgage bit as it covers both issues really .

Thanks 
Alan 

dunstonh

So is this doable and would it be tax free as the pension lump sum does come tax free for the first 25%

Although it is effectively robbing your retirement years to pay for something in your working years.  Plus, it would stop you using phased flexi-access drawdown in retirement, which is one of the more popular methods of drawing income as it can get more tax free out of your pension over your life than taking it up front.

This assumes it is a defined contribution pension and not a defined benefit pension.  Maybe you can clarify (the latter may not be accessible before scheme age or suffer penalties if it is).

Also sorry in advance wasn't sure if I should have put this in the pensions bit or mortgage bit as it covers both issues really .

Mortgage section is best as its not really a pension question.  No doubt the mortgage guys will be around at some point to pick up on the other bits you ask.