Can you still get consumer credit on a drawdown pension?

[Kermit power]

I won't be retiring for a few years yet, but when I do, I'll almost certainly take my income on drawdown.

When I do retire, we're planning to move away from London, and will doubtless end up getting new kitchen, carpets etc wherever we move to, which got me wondering... can you still get consumer credit it you're taking your income on drawdown?

Obviously I'd have the cash to pay, but when so many of these things are on 0% APR, it would seem daft to pay cash rather than drawing the cash out month by month and earning income on the capital in the meantime?

[omniflow]

I can't answer your specific question, but I do know that when trying to act as guarantor for a flat my Daughter was renting, they refused point blank to consider a drawdown pension, even though the pot size was in excess of the LTA that was in place at the time. In the end we paid 12 months rent in advance. We haven't had that problem every time a child has moved into new rented accommodation, but it does crop up regularly.

[Kermit power]

omniflow said:

I can't answer your specific question, but I do know that when trying to act as guarantor for a flat my Daughter was renting, they refused point blank to consider a drawdown pension, even though the pot size was in excess of the LTA that was in place at the time. In the end we paid 12 months rent in advance. We haven't had that problem every time a child has moved into new rented accommodation, but it does crop up regularly.

Thanks. That's the sort of thing I was worried might happen.

Just a bit nuts when, as you say, you've got a large pot of cash sat there as a verifiable asset which they won't take into account whereas they will take into account a salary which isn't guaranteed beyond the next pay check!

[alscar]

In contrast perhaps since taking early retirement I have taken out a car finance agreement ( albeit briefly to take advantage of a dealer contribution and paid it off after 30 days ) and twice acted as guarantor for 2 of my adult children.
For each of the 3 agreements I was only asked to put down my annual income.

[douglasb]

I was going to pay cash for a conservatory however the company offered 0% finance so I applied. At first they refused based on income/expenditure but when I could show that I had the money sitting in an account which I would take monthly payments from they changed their mind.

[cliffords]

I requested an uplift to my credit card limit from £5k to £10k online in my bank app. I wanted to pay for a kitchen from a DIY kitchen store and wanted a bit of consumer protection.
I had a nil ballance at the time and over £100k with that bank in savings.
I am on drawdown again with a pot far over the current LTA

I was declined .