Unsecured Pension backed loans now available

Last post: Aug 12, 2012

Unsecured pension backed loans

Since the advent of the credit crunch, the unsecured loan market has become unremittingly difficult as more lenders shy away from lending to anyone other than those with exemplary credit. It is probably fair to say that for the majority of people it has never been more difficult to raise finance, especially unsecured loans. For this reason when we came across a new product that allows people get unsecured loans and is even eligible to those with some adverse credit we were immediately interested. Today, we are pleased to say we can add this product to the suite of loans offered by Choice Loans. The key features of this loan are:
  • Amounts from £1,000 to £100,000 are available without the need to secure on any property
  • Repayment terms of 3 to 30 years are available (though the loan must be repaid by retirement)
  • Interest rates vary from 10-15% - this is really not bad when compared to standard unsecured (or even secured) loan rates and especially when you consider the amounts you can borrow
  • All credit histories are accepted (though a good explanation of some more serious issue may be required)
  • The loans are available to Employed and Self-Employed people alike as long as affordability can be proven (bank statements, SA302s, pay slips etc all acceptable)
  • If the loan is for a business then revenue projections can be used
  • Choose between an Interest-only or Repayment loan
  • The loans are available to anyone in the UK (which includes Northern Ireland)
So this really is a very flexible option and immediately quite appealing. However, there are some conditions and they do, of course, relate to the fact that this loan is backed by your pension. The main eligibility criteria are:
  • You must have a pension worth at least £20,000. This could be a Non-contributory scheme from a former employment or it could be your own private pension or SIPP.
  • You must be aged between 18 and 70 (at the time of repayment)
  • A loan amount of up to 35-50% of your pension's value is the maximum you can expect to borrow (all depending on how the fund is forecast to grow)
Overall, while there are some hoops to be jumped through, we think this is a product that will be of tremendous benefit to some whose circumstances warrant it. Certainly we can think of no other product where you can borrow such large amounts without the need for property as security so it does have merits. To find out more or to discuss options the please call us on 0845 1260350 to discuss with one of our trained staff.