Idea for a new financial services product - Mortgage guaranteed by pension fund
So I want to buy a house. I could just about afford it cash, but would have zero savings if I did that, and given that I am in and out of work all the time it wouldn’t be fun being in between gigs with no access to funds.
Mortgage companies are few and far between in being prepared to accept me, since I like to take prolonged periods off work (as I don’t really need to work a full year to earn what I am happy to live on).
So my main problem is I am mid gig at the moment, and it could end any time really due to the usual stuff client needs changing etc, if it ends the mortgage company will probably pull the plug on the mortgage.
I am only a few years away from 55 when I can access my pension pot. Even if I paid 40 % tax on whatever I took out it would still comfortably cover the price of the house.
So my idea for an innovative financial product is a mortgage which doesn’t rely on your work status, but rather agrees to accept a charge on your pension fund as security (in addition to the house which they already have as security). That way they have guaranteed collateral, and I can buy a house without worrying the job and mortgage will get pulled at the last minute.
So whats wrong with this plan?
So I want to buy a house. I could just about afford it cash, but would have zero savings if I did that, and given that I am in and out of work all the time it wouldn’t be fun being in between gigs with no access to funds.
Mortgage companies are few and far between in being prepared to accept me, since I like to take prolonged periods off work (as I don’t really need to work a full year to earn what I am happy to live on).
So my main problem is I am mid gig at the moment, and it could end any time really due to the usual stuff client needs changing etc, if it ends the mortgage company will probably pull the plug on the mortgage.
I am only a few years away from 55 when I can access my pension pot. Even if I paid 40 % tax on whatever I took out it would still comfortably cover the price of the house.
So my idea for an innovative financial product is a mortgage which doesn’t rely on your work status, but rather agrees to accept a charge on your pension fund as security (in addition to the house which they already have as security). That way they have guaranteed collateral, and I can buy a house without worrying the job and mortgage will get pulled at the last minute.
So whats wrong with this plan?
Where to start...
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