Getting a mortgage with pension income

[westy 0]

Hi all, new to the forum so please excuse any poor etiquette! I'm 55, working part-time and looking to start drawing down on my pension (SIPP) in about a year's time. We currently own our own home without a mortgage, it's probably worth about £600k, but would like to see if we could borrow another £150k so we could buy a bigger place as we may well need to house ageing parents! As the pension would be our only source of income, would this be possible? For reference , the pension pot is around £800k.

All advice appreciated.

[mortgageinfo 6]

It's possible from what you have said, yes.

I would recommended speaking to an IFA that could look at the benefits of two options, using some of your pension balance or taking out a mortgage.

Both options worth considering.

 

[EvolutionBlogger 81]

20 hours ago, westy said:

Hi all, new to the forum so please excuse any poor etiquette! I'm 55, working part-time and looking to start drawing down on my pension (SIPP) in about a year's time. We currently own our own home without a mortgage, it's probably worth about £600k, but would like to see if we could borrow another £150k so we could buy a bigger place as we may well need to house ageing parents! As the pension would be our only source of income, would this be possible? For reference , the pension pot is around £800k.

All advice appreciated.

Why dont you take the 150k out of your pension? It would be tax free. No mortgage repayments either 

[westy 0]

On 2/12/2021 at 3:03 PM, EvolutionBlogger said:

Why dont you take the 150k out of your pension? It would be tax free. No mortgage repayments either 

Would it not be better to leave my pension pot in tact, where it may return 5/7% pa, and borrow via an interest only mortgage at 2/3% a year?