Will auto-enrolment pension contributions affect my mortgage affordability?

Sibbers123

Will my auto-enrolment pension contributions affect my mortgage affordability? I have read some lenders take these into account and others don’t.

Obviously, I can opt out the pension but I don’t want to as it is growing nicely at the moment!

i have completed an AIP and it didn’t ask for pension contributions, so I assume that the lender I have an AIP with (Clydesdale) don’t take pension contributions in to account?

MaryNB

I applied with Halifax, it wasn't an issue at all. 

Ring a mortgage advisor at Clydesdale and ask if they take it into account.

tim_london

When you're submit your application for real they will check your affordability.  Meaning they will check your take home pay and expenditures.  The real application form usually does ask about pension contribution.

Auto-enrolment (or salary sacrifice) means you have less take home pay, however they also know that you can cancel this if necessary.  All in all not a problem at all.