How does a pension loan work?
The world of pensions and pension related products can often be confusing and we are often asked how does a pension loan work? but if you are looking to cash in your pension then look no further. We are one of the UKs few authorised firms that facilitate pension loans for UK pension holders that allows them to take a loan against their pension and repay it later, when their pension is payable, usually at 50+.
What is a pension loan?
A pension loan differs greatly from pension release for a number of reasons. The first one is that his scheme has nothing to do with releasing cash from your pension and everything to do with taking out a loan today and then repaying that loan only when the pension becomes payable. As long as the pension scheme you are discussing is a personal pension then you are almost guaranteed to be accepted for a loan.
The other important thing to remember is that even if you have a bad credit history and have been turned down for loans and credit recently, it doesn’t matter because there are absolutely no credit checks at all. The criteria for a pension loan is simple: as long as you have at least £20k in your personal pension and at least £40k in your ex-occupational pension, you will qualify for a pension loan. Obviously there is more information that will be rquired to complete the process but this expalins the basic details.
So if you are interested in taking a loan against your pension, get in touch today and we will send you our fact sheet on, ‘how does a pension loan work?’
