Using Pension Pot to secure a mortgage

MWT

Linton said:

So An important benefit of of an ER is that the interest rate is fixed for the duration of the mortgage. No worries about future rate increases. But you can still pay off the interest as with a RIO if that is what you want to do.

On the other hand just going for a RIO will probably get you a larger mortgage especially if you are relatively young.

There is certainly a good range of products available to those in retirement these days including standard repayment mortgages of course, and a RIO can also have a fixed interest rate for life, not just for an initial period, it is not just for ER products.

As ever, it is important to check the details and make sure the product you choose has the features you require, like a fixed and reducing schedule of ERC for example if you plan to pay it down more aggressively over time.

 

rebs

Thanks for everyone's help so far - I have been talking to 3 or 4 brokers and have got quite far into the process with a couple of them who have both mentioned the same lender.

Quick question on what would be the appropriate etiquette here - I've gone through quite detailed fact finding with the brokers and they have gone off to confirm details with the lender.

Would it be an issue if both lenders approach that same lender with my details? 

kingstreet

Once you have an illustration from each one; if they are the same lender/product go for the broker with whom you feel most comfortable. Don't let it go beyond illustrations. Only one broker should proceed beyond that point to agreement in principle, for example.

rebs

kingstreet said:

Once you have an illustration from each one; if they are the same lender/product go for the broker with whom you feel most comfortable. Don't let it go beyond illustrations. Only one broker should proceed beyond that point to agreement in principle, for example.

Thank you - that's good and specific - exactly what I needed to know.