Pension contributions reduce mortgage amount?

tyler80

Is it true that some lenders look at pension contributions in the same way as loan repayments when assessing whether to give you a mortgage?

dunstonh

tyler80 wrote: »

Is it true that some lenders look at pension contributions in the same way as loan repayments when assessing whether to give you a mortgage?

No.

Some old or informal salary sacrifice schemes had the potential to reduce an income. However, nowadays the employers still record your pre salary sacrifice income as your income. So, its rarely an issue nowadays. If you are not using salary sacrifice then its a non-issue.

tyler80

Thanks, I'll tell my mum to stop sending me links to the daily mail

Mortgage lenders under attack over pensions penalty that restricts sums customers can borrow

dunstonh

Looks like the Mail scaremongering.

Lenders have always asked for spending habits and completion of a budget breakdown is very common. They have also been working on an affordability basis for a long time. I started doing mortgages in the early 90s with a major lender and we didnt go buy the old 3x multiplier back then but based it on affordability. This is not new. It is just becoming the norm.

Ros Altman is a mouthpiece that gets wheeled out periodically to make some statement that promotes Saga (and herself) in some way. A little bit of checking finds that this article has been "promoted" by Saga and appears in a number of other media outlets. Most of whom published the article this over 12 hours earlier than the Mail. The Mail article is nearly word for word of other media outlets. It is lazy reporting by the Mail. Not uncommon as they use company mouthpieces frequently to make the news.

saverjustice

Outgoings are... er... outgoings whatever they may be called dunstonh.