can i use substantial equity in my sipps pension to aquire/guarantee a personal loan?

Question

due to change in circumstances i am no longer a home owner nor do i have a good credit score. however i now have a high regular income, but debt that i need to resolve and have been refused loans from my bank. i do not want to contact the many dubious money lending companies. ironically i have a large sum in my sipps pension but are years off 50. it was used against a mortgage can it be used to guarantee a loan? need help or any suggestions.

Answer 1

No.

Your Pension can ONLY pay out when you Retire (at age 50 or later).

If you got Divorced, your (ex) wife can have part 'earmarked' for her, but she can't get hold of it until you retire.

In theory, should you go Bankrupt, your Creditors could also claim - but again can not get hold of it until you retire.

I suggest you look at reaching agreement with your creditors to pay them off out of your Income. Start by asking them to stop charging Interest and agree regular payment schedule. If they won't play ball, go see Citizens Advice about an IVA.