Property News · May 7, 2015

I failed to get a mortgage because of my pension contributions


Do all banks and building societies take pension contributions into account when deciding whether to approve a mortgage?Q I recently applied for a mortgage and passed the “agreement in principle” and valuation stages but was knocked back at the affordability check for the amount I needed. The reason? I’m paying the relatively high amount of 6% of salary into my pension. The lender viewed this as reducing my disposable income and was concerned that should interest rates rise I may not be able to keep up my mortgage payments. However, my pension payments are entirely voluntary and can be cancelled at any time. So if interest rates rose I would cancel my pension to keep paying my mortgage like any sensible person. Continue reading…

Source : theguardian.com
Read more…I failed to get a mortgage because of my pension contributions

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