Pension as part of mortgage application?

rizlacroix

Hello, Im looking to move house so my mortgage will increase, and I want to ask if mortgage companies would consider my pension as part of the application. Im 46, have a Hampshire County Council pension through my employer. The last statement I had (Aug 2014) states my maximum lump sum on retirement would be £35000 and income of £5361 per year, and that would be if I stop contributions now, and over £80000 lump sum if I contribute until 67. so at the very least there is £35000 that I can use. Can anyone tell me if that would contribute to either extending the term of the mortgage after age 65 (Im assuming that's the retirement age, although of course will probably increase!) and if so, would that allow me to have a bigger mortgage, or be able to use some of the lump sum upon retirement to pay off some/all of the loan? Any advice gratefully received, as I cant seem to find anything on the web! Many thanks.

kingstreet

Possibly to longer term, but will depend on lender. You can do a mortgage to end before your 70th birthday without evidence of income in retirement with some lenders.

No to borrow more. Affordability is based on current income and outgoings.

No to use to repay mortgage capital. You can do that if you choose, but the lender won't put part of the mortgage on interest-only if that's what you're wondering.

rizlacroix

Hello Kingstreet

Many thanks for replying so quickly, and for the information, its much appreciated