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Pension Contributions
mcowan77
Posts: 123 Forumite
About to start a mortgage application for a new build using help to buy.
I pay a large amount of my monthly pay into a pension ( 13.5 %)
Will a lender take this into account and will it damage my chance of a bigger mortgage with a decent rate?
the only banks that i can use are for help to buy are
Barclays
Glasgow Credit Union
Leeds Building Society
Lloyds Banking Group
Nationwide
Scotwest Credit Union
Skipton Building Society
Virgin Money
thanks
I pay a large amount of my monthly pay into a pension ( 13.5 %)
Will a lender take this into account and will it damage my chance of a bigger mortgage with a decent rate?
the only banks that i can use are for help to buy are
Barclays
Glasgow Credit Union
Leeds Building Society
Lloyds Banking Group
Nationwide
Scotwest Credit Union
Skipton Building Society
Virgin Money
thanks
0
Comments
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Yes they take account of pension contributions/student loans etc when assessing how much you can borrow - I've cancelled mine in preperat ion for a mortgage app in the next few months.
There may be a broker online that knows of one or more lender that doesn't take account of contributions though0 -
The post office offer help to buy too0
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Some lenders do not take pension payments into account.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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I found this article from Oct 14 online if you scroll to the bottom it lists the providers that do/do not consider pension contributions
http://m.moneymarketing.co.uk/2014692.article?mobilesite=enabled
You'd obviously need to check that the info is still upto date0 -
cheers folks0
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Not HTB - Equity Loan they don't. You're talking about HTB - MG.TravelBugHappy wrote: »The post office offer help to buy too
The clue was in the OP;-
"About to start a mortgage application for a new build using help to buy."
FWIW many lenders don't take pension contributions into account in establishing affordability. An independent mortgage broker would be able to assist in choosing the right lender and getting the best deal.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
My husband pays 30% into his pension but he can only change it in June. When we applied last month we sent a cover letter explaining that and promising he will reduce it to 7% from June.
We never had any enquiries about it and there is nothing in the mortgage offer that makes it conditional on reduced pension contributions.
The lender is Nationwide.0
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