Hi, new user here, we currently have two mortgages for 1 house with indirect amortisation and we are approaching retirement.
Our bank (PF), said that with the income at retirement, (which would be 50% less than the one we have today) can’t have us anymore, because we dont meet the affordability/sustainability criteria… Can they actually do that?
We asked to an another bank and they said if we were their clients, they would have made an exeption…
If you have mortgage that is expiring and you need to renew then it’s normal for banks to reassess their metrics
However I would expect that pension proceeds (capital) would also be considered part of metrics
Maybe you would need to reduce the mortgage using pension capital.
but lowering the pension, would mean less income.
Banks assume a % return on your assets. So you will have fictional income there.
Two mortgages? Can you truly afford that house?
Yes, they can, of course.