How does DB Pension and AVC's affects on Mortgage application?

Hi all

Does anyone know if Pension is seen as Lability when applying for Mortgage ( monthly outgoing cost limiting the ability to repay) or as good thing if you have headroom to making AVC's (shows the ability to Save)?

Hope I am making sense?

I am going to be applying for Mortgage in the new year but current playing 25% of my salary into a pension (Over 40). Was thinking of dropping that dow to min 5% to still get employer top-up and boost my take-home after-tax pay to show the ability to repay. Currently saving around €2K cash into cash saving every month so AVC after been taxied should be able to bring this up to €2370 per month.

If you can provide paperwork showing the difference between minimum contribution you have to pay towards the pension and the AVC I would have thought the bank would consider the latter more a form of savings.

As far a a bank is concerned your monthly affordability is based on money that could go towards paying your mortgage.

As long as you have your deposit it shouldn't matter too much in your case.

skrooge said:

If you can provide paperwork showing the difference between minimum contribution you have to pay towards the pension and the AVC I would have thought the bank would consider the latter more a form of savings.

As far a a bank is concerned your monthly affordability is based on money that could go towards paying your mortgage.

As long as you have your deposit it shouldn't matter too much in your case.

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That's what I was thinking as well. But was not sure thanks for the reply