I am having trouble finding a lender who will lend me the full amount outstanding on the FMH in my sole name based on my income alone. Most will not take tax credits into account. Can I use a pension share to get a mortgage? Thanks
Frankly, I''d be inclined to doubt it. A pension share is basically the right to receive an income at some time in the future.
We sometimes do get queries on questions like whether lenders will accept maintenance payments as income, but really I''d say you need a mortgage broker. The fact is, I''m afraid, that I am not a licensed IFA and I suspect it would be illegal for me to give financial advice of this nature.
I very much doubt you''ll find a lender who will take a pension share as collateral for a mortgage. If I were a lender then I certainly wouldn''t. How is a pension share going to help you make the monthly payments?
I agree with Mike, an IFA is in the best position to advise. There is such a thing as pension mortgages which are sold to save tax - pension contributions benefit from up to 40% tax relief for higher rate tax payers. The mortgage is interest only and the intention is the lump sum paid on retirement will pay off the mortgage.
A year or so there was some discussion by banks, house builders and the CBI about schemes which in certain circumstances would allow people to use their pensions as security to borrow money in order to purchase homes. I''ve no idea if there were plans to carry the idea forward but I would have thought there is some risk in relying on the family home as a savings vehicle for retirement.