Barclays remove pension contributions from mortgage affordability calculator
Barclays has removed its requirement for applicants to state how much they pay into their pension each month.
The bank will automatically account for a base level of pension contributions in its affordability calculation, rather than requesting a specific amount.
Aaron Strutt, product director at Trinity Financial, says: “The lenders work on an affordability basis and some borrowers with large pension contributions can struggle to secure enough money.
“More of the lenders are realising that pension contributions are optional and they can be stopped or reduced at any time. As a result, they are changing they way the assess mortgage applications.”
Some of the banks and building societies are more generous than others when it comes to pensions contributions. For example, NatWest for Intermediaries does not ask for specific pension payments to be entered into its mortgage calculator.
If pension contributions are reducing your maximum loan size, call Trinity Financial on 020 7016 0790.
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