Pension Backed Loans – FAQ

In this article we attempt to answer some of the Frequently Asked Questions about pension loans. Please bear in mind that different schemes to help people get cash from their pension become available regularly. To get the latest details about what is available for you, in your unique situation, please fill in the form on the top-right of this page to book a no-obligation phone call.

What is a Pension Backed Loan?

Generally speaking, it is when a loan is made to you, and your pension is used as security to back up your ability to pay the loan back. This has the advantage that credit checks are not needed, and the provider does not need to know about your credit history or your employment. Obviously, this can be good news as it means that even if you don’t have a great credit record, you may still be able to get the loan.

At the time of writing, it is rare for UK providers to offer actual loans against a pension. It is more likely that you will be offered the option to transfer your pension to a different company, and that they will pay you “cash back” as a bonus. But this also means that even with a bad credit history you may still be able to access the money.

Higher value pensions, over £60,000 may be eligible for other options. Please fill in the form at the top-right of this page to find out more.

Am I Eligible?

To be eligible, you need to have one or more UK pensions, with a total value of £16,000 or more. It is OK if those are frozen pensions, OR if they are active, and you are still paying in every month. Also, sometimes people have old pensions, from companies they no longer work for, and we may be able to help you track down and access those old pensions.

Is My Credit Rating Affected?

No, as there are no credit checks, applying for a pension backed loan has no effect on your credit rating – whether you proceed with it or not.

How Long Does it Take?

The process varies a lot, depending on which scheme you use, and how quickly your current pension company processes the paperwork. As a rough guide, it usually takes from 4-12 weeks to complete once you have given the go-ahead.

To find out more, free of charge and with no obligation, please fill in the form at the top-right of this page. We will contact you to book a convenient time to discuss your options in a free phone call.