Halifax prohibits final salary pensions as Collateral

alanhanger

I was refused an interest only mortgage using my final salary pension as collateral. My projected pension adequately covered the capital but because final salary pensions do note have a pot, only a guaranteed payout, I was refused a mortgage. I tried to explain that final salary schemes gave a guaranteed payout but halifax were adamant that I had to state if there was at least £250,000 in the pot. This means that if you have a final salary pension you are prohibited from accessing Halifax mortgages. Are they allowed to discriminate like that?

ACG

Give over. Its not discrimination if everyone has the same criteria.

If you can not evidence there will be a lump sum of money to pay off the balance what do you expect?

amnblog

Halifax criteria is clear on supporting interest only lending with a final salary scheMe. They say the current fund value has to be £250,000.

Presumably you only want the interest only option for cash flow purposes as by definition you can afford capital repayment.

For other options with other lenders consult a broker.

Malmo

Are they allowed to discriminate like that?

Lenders establish their own commercial decisions and criteria. They are under no obligation to lend to you.

danielanthony

alanhanger wrote: »

Are they allowed to discriminate like that?

Oh, the humanity! I think you should form a resistance movement against this type of tyranny.