Should I use pension to pay off mortgage?

Pickle29

Hi James
Just wondered if you knew whether Leeds BS would allow someone in a DMP to port their mortgage if they downsized to a smaller property with a smaller mortgage - say 30-40% of LTV? ( current mortgage is about 55% LTV)
Thanks

jamesd

It seems likely that they would because it reduces their amount of capital at risk and also helps with affordability and a lower LTV so their security is improved as well. That's the sort of thing that would require an individual decision by the underwriters based on the specific circumstances because it'll be outside their normal lending criteria. Anything that cuts the amount of money at risk or improves affordability has a chance. I've no inside information, though, just the fruit of checking my facts carefully before my earlier post.

Pickle29

Many thanks - it does have a pension link because that was also an option we were considering to use some of hubbys pension to pay a lump off if we couldn't get another mortgage! Cheers