Can I use my pension income to remortgage?
Posted on 3 February 2017 by Mr Allen
We are looking to remortgage our property which has no mortgage and is valued at £695,000, we are looking to borrow about £65,000 on an interest only basis on a fixed rate for 5 years, at the end of which we will pay it back. We have pension income of approximately £19,000. Is this possible to obtain? At this stage we do not want to do equity release.
Subject to your overall financial position, it may be possible to secure a mortgage based on pension income. There are some niche lenders available on the market who can manually underwrite a mortgage based on sustainability and they may be prepared to lend based on your individual requirements.
You want a fixed rate over 5 years which is a good move as you would know exactly how much you will be paying each month and the mortgage will be redeemed at the end of the term.
Lenders would want to know why you want to borrow £65,000 and whether you have any other assets in the background such as investments and savings tied up in shares etc. This and details of monthly expenditure would be useful in accessing affordability.
If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a clearer idea of how we can help.
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