Pension Forecast for Mortgage

WLITC

So I’m potentially looking to get a mortgage past standard retirement age (I’m currently 50 years old) and I understand for this a lender would want to proof of income after retirement. However I’m not clear on what that proof looks like? Would a simple pension forecast suffice? I have two pensions (one current work pension) and for the other I get an annual statement that notes what the pension might look like on retirement I’m assuming I can get something similar from my work pension. Would these suffice for a lender or would they typically want more?

ACG

It will vary from lender to lender on what they want.
If you are applying directly, you need to check that the lender will go beyond your retirement age and what evidence they will want.

If you are using a broker, they will tell you what you will need for the lender they have recommended.

tacpot12

The mortgage company should accept your standard letter/pack from work confirming what any defined benefit (DB) pension will pay you. If you have any defined contribution (DC) pensions, I would expect that the mortgage company would accept the projection as this will be conservative in its growth projections and will assume that you will buy an annuity with the 'pot' when you retire. They will also assume that you continue to contribute to the pension until normal retirement age.

You might have a problem if the projection is not enough to justify the amount you want to borrow. I think it will be very difficult to convince a mortgage company that your DC pension will pay more than the projection the pension provider has issued. As suggested above, a good mortgage broker will be able to help navigate the possibilities.

Tigertailor

We have just done this.

DH is 51, he has two pensions, one already partially paying out monthly until 55 then it goes full pension. We submitted the original pension statement from when it started(at 40) with all the usual forecast and index linked blurb and then also annual tax summary statement showing the current monthly payment rate.
HIs current work pension(Legal&General) is detailed on his pay statements so we didn't have to provide further for that.

For me, I am still under 50, and my pension is a work pension which is also detailed on my pay statements. So I didn't have to provide anything else for that (I work for a well known organisation whose pensions are well known and solid) and my second pension we are dissolving to use part of for the deposit to purchase, so I submitted the termination statements for that.

We also have 3 life insurance policies. Two work and one private. The private one more than covers the amount of outstanding mortgage.
We also have quite good sickness cover from our employers too.

We used L&C Brokers who were brilliant. We reduced the years down to 23, which I wanted anyway, actually wanted only 20 but broker was clever and suggested I use the 10% pa pay off instead to make regular payments off when I wanted, but not be tied into larger mortgage payments should something happen in the future.
We have a mortgage offer from Nationwide at a great rate.:D