Local Government Pension

Madamejones

Hello - I am 52, SR age is currently 67.
I hope to take out our first mortgage for a RTB. 
I will have 25 years Local Government pension when i retire but most importantly, if I die in service, my husband will get a lump sum. Currently this is £96k and will increase as the years pass.

I also have life insurance but does the local gov benefits help with getting a mortgage or is it simply, income, credit score and disposable income?

Thanks in advance.

K_S

@madamejones If your question is whether the LGPS lump-sum will help with your capital-repayment RTB mortgage, afaik the answer is no.

Generally speaking, how much you can borrow is based on your income, debt, financial commitments, age (which determines max term), etc. The credit history will mainly play a part in determining which lenders you have access to.

Bigphil1474

OP, the death in service benefit only applies if you remain in Local Government, so a lender would have no guarantees that you would do so. I asked about it when we re-mortgaged years ago and apart from the guy we were dealing with not really knowing about it, he was only interested in income and financial commitments up to retirement age. I was trying to avoid paying for life insurance, but they insisted we had it, although we took it out elsewhere.