Mortgage problems from new pension rules

The April 2015 pension reforms could create problems for older workers, says the Financial Times.

At present, people can use annuity income to validate mortgage borrowing – lenders can see an assured source of income. But under the new flexible withdrawal rules, lenders will find it hard to assess how much someone can draw from their pension fund to cover their mortgage repayments. Older workers could find it hard to secure mortgages that run beyond retirement age.

We believe lenders will adapt quickly to the new rules and that ‘lifetime’ mortgages will become more widely available to older people.