Company Pension and Mortgage

Discussion in 'Mortgages and buying and selling homes' started by Chris2014, Apr 10, 2017.

  1. Chris2014

    Chris2014 Frequent Poster

    Posts:
    110
    I'm with a company nearly a year and have been saving for a mortgage since day 1.

    ~100k Mortgage with 10k deposit

    I now have the deposit and have been advised by EBS to apply and given the forms.

    My company have made me aware that i can join the pension scheme but up until now the plan was to join after i reduced my rent and savings with a mortgage.

    Does it look a lot better on a mortgage if i'm paying into a pension or putting the same amount towards savings for a deposit? Currently saving 450 a month. Option would be to change to 350 and 100 pension.

    Thanks
     
  2. aristotle

    aristotle Frequent Poster

    Posts:
    682
    Better to save it. Paying a pension reduces your net income so that reduces your borrowing capacity.

    You can get your mortgage\house sorted and then start a pension later on.
     
    rob oyle likes this.
  3. rob oyle

    rob oyle Frequent Poster

    Posts:
    447
    I'm with the great philosopher on this one... but don't put providing for your pension on too long a finger!
     
  4. Gordon Gekko

    Gordon Gekko Frequent Poster

    Posts:
    2,236
    I suspended my AVCs during the application process but kept the money aside and when the mortgage had been drawn down I made a single AVC to catch up.