Pension Backed Loans – your questions answered

Pension loans can come in different forms. The best option for you will depend on your circumstances and the details of your pension fund. We have attempted to answer some of the common questions below. If you are considering this option please book a free phone call to discuss your options – using the enquiry form at the top-right of this page.

What are they?

There are many types of schemes, but generally speaking a pension backed loan is an unsecured loan which allows you to borrow an amount of your pension fund as a loan. The amount you can borrow will vary with different schemes, but it is usually in the range of 25% to 50% of the current value of your pension.

If you have a larger pension fund – over £30,000 current value – there is also an option available to release a larger percentage of the cash in that fund, up to 100% of the value of your pension in some cases. But that is a different kind of scheme from pension loans – use our enquiry form at the top-right of this page if you would like to find out more.

These schemes have the advantage that they do not require a credit check, so they can be used even by people who have a poor credit record. You also do not need to prove your income in most cases.

Do I qualify?

To qualify you will need to have a UK pension (or several UK pensions) with a total value of more than £15,000. It does not matter whether that is a frozen pension or you are still currently paying money into the pension. If you have an old company pension that you are not currently paying money into, you may also qualify.

Do they affect my Credit Rating?

No, the loan is not registered with any credit reference agencies. There are also no credit checks involved when you arrange a pension backed loan.

Can I repay my loan early?

Yes, there are no penalties for early repayment of pension loans.

How long does it take to complete?

Loans usually complete within 4-12 weeks. Your provider will keep you informed of progress during the process, and will be available to answer any questions or help you complete any paperwork.

Find out more – to find out if a pension loan is right for you, simply complete the enquiry form at the top-right of this page to book a free and confidential phone call to discuss your options. There are no credit checks, and no obligation

As with any important financial decision, if you are unsure if this option is right for you we recommend that you consult a qualified Financial Adviser, and we are happy to provide information for you to discuss with your adviser should you need it.