Final Salary Pension and Mortgages

[pauljdh]

I have 2 final salary schemes and some defined contribution AVCs in my pension pot and am paying a mortgage which finishes in 2025. Im nearly 56.

Making tentative plans for the future and wondered whats the rule with paying / taking out a mortgage on a pension?

The way I look at it I could loose my job tomorrow, zero income, but the pension is mine till I die - so should be minimal risk and with life policies in place there should be no concern.

Do lenders only lend up to normal retirement age?

A small mortgage may be part of my plan dependant on where I decide to live after retirement etc.

Thanks

[LeoSayer]

In my mind final salary pensions are one of the most reliable sources of income you can get so I see no reason why you should have a problem getting a mortgage provided you have plenty of equity.

My parents were able to remortgage a few times during their 60s without trouble, however I have heard that the options are more limited once you're in your 70s.

[Alex_6n2]

Depends on the terms of your scheme and if changes are allowable doesn't it?

For example I know a scheme that changed recently from 1/40th of your final salary for every year you've worked, to 1/60th! Even for the people currently enrolled on the scheme and signed up to the terms :-/

[sidicks]

Alex_6n2 said:

Depends on the terms of your scheme and if changes are allowable doesn't it?

For example I know a scheme that changed recently from 1/40th of your final salary for every year you've worked, to 1/60th! Even for the people currently enrolled on the scheme and signed up to the terms :-/

Changes to future accrual are not uncommon.