Pensioner Mortgages
A pensioner mortgage is simply a mortgage assessed on pension income rather than employment salary.
About Pensioner Mortgages
State Pension, defined benefit pensions, defined contribution drawdown, annuity income, SIPP withdrawals, and rental income from investment properties are all accepted by specialist later life lenders. The high-street bank model of declining to lend to retired people is outdated.
The options we compare
Defined Benefit Pension Mortgage
A final salary or defined benefit pension provides a guaranteed regular income for life. Specialist lenders accept this in full for mortgage affordability - often providing the most favourable income assessment of any pension type.
Defined Contribution (Drawdown) Mortgage
If your pension is in drawdown - you take income as needed rather than a guaranteed annuity - specialist lenders assess affordability at the sustainable withdrawal rate (typically 3-4% of fund value) or at your actual drawdown level if formally documented.
State Pension Mortgage
State Pension (£11,975/year for the full new State Pension 2025/26) is accepted by specialist lenders as part of the income mix. Alone it is typically insufficient for a significant mortgage, but combined with private pension or rental income it contributes materially to affordability.
Annuity Income Mortgage
A pension annuity provides a guaranteed income for life - similar to a defined benefit pension. Specialist lenders accept annuity income in full for mortgage affordability. An annuity income mortgage is one of the most straightforward later life lending applications.
SIPP Mortgage
Self-Invested Personal Pension income is accepted by specialist lenders including LiveMore Capital. Whether taking the 25% tax-free lump sum, a regular income, or flexible drawdown, SIPP income is assessed for mortgage affordability.
Multiple Income Sources
Many retired borrowers have a combination of State Pension, private pension, rental income from buy-to-let properties, and investment portfolio income. Specialist lenders assess all of these together - our team structures the application to present the most favourable combined income picture.
How We Help
Full income inventory
We take a complete inventory of your income - State Pension, all private pensions, drawdown rate, annuity payments, rental income, dividends, SIPP withdrawals. This is the foundation of any pensioner mortgage application.
Lender matching
Different specialist lenders have different income assessment models. LiveMore Capital is the most flexible overall. Hodge Bank is strongest for annuity and DB pension income. We match your income profile to the lender most likely to offer the best terms.
Documentation
Pension income evidence: P60 from pension (DB pension), pension fund statement and income statement (drawdown), annuity schedule, State Pension award letter, and bank statements showing credits.
Application and completion
We manage the full application. Most pensioner mortgage applications complete within 8-12 weeks.
Speak to our later life lending specialists
Call 0204 6211776 · Whole-of-market advice across all later life products
Frequently asked questions
Which lender is best for a pensioner mortgage?
LiveMore Capital is widely regarded as the most flexible pensioner mortgage lender - no maximum age, widest income acceptance, interest-only and RIO available. Hodge Bank is excellent for annuity and DB pension income. Family Building Society takes a holistic approach. We identify the right lender for your specific income structure and age.
Can I get a mortgage on just my State Pension?
The full new State Pension (£11,975/year in 2025/26) equates to approximately £998/month. A mortgage payment of 30-35% of income (a typical lending guideline) would suggest a maximum monthly payment of approximately £300. This supports only a small loan amount. For most clients with only State Pension income, equity release is the more realistic route to accessing property wealth.
Does the pension income assessment differ between lenders?
Significantly. Some lenders use the actual pension payment. Others use a standardised rate applied to the fund value. DB pensions are universally accepted in full. DC drawdown assessment varies - LiveMore is most generous. We compare assessment methodologies before recommending a lender.
Can a widow or widower get a pensioner mortgage on survivor pension income?
Yes - survivor pension income (the pension paid to a spouse after the original pensioner dies) is accepted as income by specialist later life lenders. We have extensive experience advising widows and widowers on their mortgage options after losing a partner.
What if my pension income changes during the mortgage term?
For DB pensions and annuities, income is guaranteed and does not change (other than any inflation uplift). For DC drawdown, the withdrawal rate may change. If your income significantly reduces during the mortgage term, you should contact us to review the situation. RIO mortgages allow the repayment event to be triggered by a move to care - providing flexibility if income reduces and the home needs to be sold.