Company Pension and Mortgage

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

  1. Chris2014

    Chris2014 Frequent Poster

    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.

  2. aristotle

    aristotle Frequent Poster

    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

    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

    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.