Idea for a new financial services product - Mortgage guaranteed by pension fund

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jamesbrown replied

6 March 2016, 19:13
Originally posted by CoolCat View Post

So whats wrong with this plan?

Where to start...
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CoolCat replied

6 March 2016, 18:05
Originally posted by AtW View Post

It's

Get it right!

The reality is if my income was smoothed over and continuous, rather than rather large peaks and some laziness in between, earning the same... then guess what a mortgage wouldn't be a problem. I regard it as discrimination against those of us earning enough not to need to work full years.
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AtW replied

6 March 2016, 18:02
Originally posted by CoolCat View Post

Its not that much debt, in the context of other things like how much I will inherit when elderly relatives croak etc.

It's

Get it right!
Leave a comment:
CoolCat replied

6 March 2016, 18:01
Originally posted by AtW View Post

Just one thing - at nearly 55 you should be concerned about other things than loading yourself up with a lot of mortgage debton top of the house pricing bubble...

Its not that much debt, in the context of other things like how much I will inherit when elderly relatives croak etc.
Leave a comment:
AtW replied

6 March 2016, 17:57
Originally posted by CoolCat View Post

So whats wrong with this plan?

Just one thing - at nearly 55 you should be concerned about other things than loading yourself up with a lot of mortgage debton top of the house pricing bubble...
Leave a comment:
CoolCat started a topic Idea for a new financial services product - Mortgage guaranteed by pension fund

6 March 2016, 17:51
Idea for a new financial services product - Mortgage guaranteed by pension fund

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?
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