Is remortgaging when in receipt of employers pension possible?

FBD2910

I have more than twice my outstanding mortgage in equity now. I had to take early ill health retirement & access my NHS/LA pension at 53. Am I able to remortgage being in receipt of my employer pension now? I am too young for the state pension so not in receipt of that. All I keep seeing are equity release & lifetime mortgage schemes when I google this & I really don’t want to do either of these, just want to remortgage to reduce my interest rate. I’m happy to stay with the same provider if it’s a good rate. Looking at general mortgage calculators I should be paying at least £200 a month less than I currently am doing. 

MWT

Have you used your current lenders affordability calculator to see if you would qualify for the amount you need with the income you have?

MovingForwards

How much are you looking to remortgage for, what's your property worth and roughly what's your pension each year? 
That's the key bits of information for anyone to say what's viable.

FBD2910

Hi thanks for quick reply. I haven’t yet it’s not possible without putting in my current mortgage details & I don’t want to do that yet. My equity is much more than the outstanding mortgage. So surely that is my so called deposit? I don’t want to borrow more just reduce payments. 

K_S

@fdb2910

- In principle, yes you should be able to remortgage using a pension that you already recieve and can evidence.

- As you rightly assume, your "deposit" will be the equity you own in the property

- very roughly speaking, if your outstanding mortgage is in the region of 4-4.5 times your gross annual pension income, you should potentially meet affordability

- if you just want to stay with your current lender (and switch products/rates without borrowing more), your income details may not even matter.

Thrugelmir

The equity in the property has no bearing on whether a potential lender will consider the mortgage affordable.  Your income and outgoings will determine that. Having a high level of equity would have a bearing on the interest rate. 

FBD2910

My property is worth190,000. Outstanding mortgage is £55,000.
income with basic pip is £20,000, however I am married, my husband still works & pays month into my account every month. We have separate finances as we have both been married before each have a house & a child each. We live in mine & rent his out. 

FBD2910

My husband pays money into my account each month that was meant to say. 

FBD2910

Thrugelmir said:

The equity in the property has no bearing on whether a potential lender will consider the mortgage affordable.  Your income and outgoings will determine that. Having a high level of equity would have a bearing on the interest rate. 

I’m sure if I am remortgaging and am reducing my mortgage payments by £200-250 a month by doing so & without ever having had any late payments or defaults that shows it is more than affordable. 

FBD2910

K_S said:

@fdb2910

- In principle, yes you should be able to remortgage using a pension that you already recieve and can evidence.

- As you rightly assume, your "deposit" will be the equity you own in the property

- very roughly speaking, if your outstanding mortgage is in the region of 4-4.5 times your gross annual pension income, you should potentially meet affordability

- if you just want to stay with your current lender (and switch products/rates without borrowing more), your income details may not even matter.

@K_S

Thanks for your reply. Unfortunately when I log in to my mortgage to look at the remortgage deals I have to confirm my details are the same & I can’t do that as I am now retired so will have to speak to them. Thanks for your reply it’s really helpful.  

K_S

FBD2910 said:

K_S said:

@fdb2910

- In principle, yes you should be able to remortgage using a pension that you already recieve and can evidence.

- As you rightly assume, your "deposit" will be the equity you own in the property

- very roughly speaking, if your outstanding mortgage is in the region of 4-4.5 times your gross annual pension income, you should potentially meet affordability

- if you just want to stay with your current lender (and switch products/rates without borrowing more), your income details may not even matter.

@K_S

Thanks for your reply. Unfortunately when I log in to my mortgage to look at the remortgage deals I have to confirm my details are the same & I can’t do that as I am now retired so will have to speak to them. Thanks for your reply it’s really helpful.  

@fbd2910 With 20k income, 55k o/s mortgage and around 30% LTV, I would be very surprised if you weren't able to remortgage.

Which lender is this? That kind of question for an online product-transfer is not very common.