Put SIPP contributions on hold for 3 months?

BishopBrennon

Hi all, 

Just a quick one really - would stopping SIPP/LISA contributions in the few months before a mortgage application increase affordability in a mortgage application? I contribute to a defined benefit scheme which I will continue, and there is no employer contribution to the SIPP/LISA. The plan would be to simply invest the missed contributions after the mortgage goes though (so effectively just missing the effect of whatever happens investment-wise in those months).

I'm not on a huge salary (19k going up to 24k when mortgage would hopefully start) - looking to borrow around 60-75k. I pay £30/month into a LISA and £60/month into a SIPP (both for retirement purposes - I have £11000 in an Help to Buy ISA which I'll use toward the deposit). 

Any thoughts welcome 

Thrugelmir

Affordability is based primarily on gross salary.  You can spend/save your net income as you wish. Though I'd add a caveat that spend is of course subjective in certain circumstances. Saving purely into a LISA at this point in time would boost your available savings towards purchasing a property.  

ACG

As there is no contractual requirement to pay in to the pension, it will not be included for affordability purposes - so you can carry on paying into it at the minute if you wish without it affecting your mortgage.