It's not unknown to use the tax free lump sum to pay off a loan or mortgage but the rest of the pension is to provide you with an income when you retire, and the tax benefits were given on that basis.

I have no idea who "Pension Options UK" are when they are at home but I suspect that they are offering you a small proportion of your savings now as long as you don't want any more later.

Does any one know if it legal to use pension funds to secure a loan? I have been looking into this and according to Pension Options UK it is possible, however I also contacted an IFA who said they had never heard of this. Any thoughts welcomed. Thanks