Well alright, it might sound a little far fetched, particularly if you hate sailing but the point is, lack of money ought not to stop you with a little help from your Credit Union friends.
At a glance:
- Unlock your pension commutation up to 3 years before you retire.
- Loans up to £100,000 or 80% of your commutation amount.
- No penalties for early repayments or lump-sum deposits.
- You can take your agreed loan in stages.
- All loans include life cover up to age 65 at no cost to the member, so in the event of death the first £40,000 of your loan will be cleared (Terms and Conditions apply).
How much can I apply for and why is this any different to a Member Loan?
This product was specifically designed to help you plan for your future retirement and help make those dreams become a reality. You can unlock your pension up to 3 years before it’s due, you are able to apply for up to 80% of your commutation amount (an amount of up to £100,000) and all the benefits of a No1 CopperPot loan are still available to you.
How does the loan work?
The loan can be drawn in stages up to the maximum amount agreed therefore giving you flexibility and freedom to make plans for your future. A pension statement or forecast from payroll will be needed and the loan will be repayable in full from an agreed source of funds by an agreed date within one week of your retirement.
How much does it cost and when is it repayable?
We'll agree a repayment date at the start of your loan and until that point you will only cover the interest plus a nominal amount to ensure that the final repayment is not greater than the capital borrowed. Interest will only be charged on the outstanding balance of your loan and is calculated on a daily basis, just as any other No1 CopperPot loan would be.
What if I want to pay my loan off before this date?
As with any other No1 CopperPot loan, you will not be penalised for lump sum payments or an early repayment of your loan. If you were to pay off a lump sum, for example, your monthly repayments would stay the same but you would essentially start paying back your capital earlier and the total amount of interest would be less.
What if I'm unable to meet my payments through unemployment or sickness?
Nobody can predict the future and the last thing on any of our minds when we take out a loan is what will happen if we suddenly become unable to make our repayments through unforeseen circumstances. So for your peace of mind, we have two insurance packages available, one covers accident and sickness, the other covers accident, sickness and unemployment.
Both offer value for money and are specifically designed for Credit Union members. While there is no pressure to take either, we strongly advise you take a look at the features below and think about what would happen to your finances if your life took an unpredictable turn for the worse.
- The sickness insurance covers you if you are off work for more than 30 days and payment is backdated to day 1 of you being off. It will also cover you for being unable to work due to stress or back problems, which many insurance policies will not (all claims are viewed individually). For more details, click here.
- You have the right to cancel your insurance policy whenever you like and you are only charged monthly meaning you do not pay interest on the insurance aspect of your loan.
Do I still get the Life Cover on this product?
Yes. Life cover is also included at no extra cost, this covers you up to age 65 and up to £40,000 so if the worst were to happen, the first £40,000 of your loan would be covered and any savings doubled, so as to ease the strain on your loved ones.
So if you’ve been dreaming of buying that Spanish villa or you have any other big projects that need financing, give us a call, we just may be able to help…
