Pension funds could be used to back mortgages

Aaron Strutt Image
Deputy Prime Minister Nick Clegg has said that parents and grandparents should be able to use their pension schemes to help their children get on the property ladder. Under plans recently announced by the Liberal Democrats, a future pension pay out could be used to put towards the mortgage in the form of a deposit. Mortgage commentators are not sure that the idea has much substance. Harriet Harman MP went one step further and told last night's BBC Question Time audience: "I think it is an absolutely barmy idea. Only a small percentage of people have got pension pots which are big enough. The idea that people should gamble their pension pot on the property market is beyond bonkers." September 28, 2012
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