Pension Income Mortgages
Retired or approaching retirement? Many lenders accept pension income for mortgage applications. We'll find the right deal for your circumstances.
Getting a Mortgage on Pension Income
Whether you're already retired or planning to retire during the mortgage term, pension income can be used to support a mortgage application. Lenders will consider state pension, private/workplace pensions, annuity income, and in some cases, pension pot projections. For those over 55, equity release or a later life mortgage may also be worth exploring. The key challenge is often the maximum age at the end of the mortgage term. Protecting your home with life insurance remains important at any age.
- Lenders who accept state and private pension income
- Maximum ages up to 80–85 at end of term
- Annuity and drawdown pension income considered
- Later life and retirement mortgage specialists
- free initial advice
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Your home may be repossessed if you do not keep up repayments on your mortgage.
What Pension Income Do Lenders Accept?
Most lenders will accept state pension income, guaranteed private/workplace pensions, and annuity income. Some will also consider pension drawdown income if it can be demonstrated as sustainable. Lump sum pensions and SIPPs require more specialist assessment.
Maximum Age Restrictions
Every lender has a maximum age at the end of the mortgage term — typically 70–85. If you're 60 and the lender's maximum is 75, the longest term available would be 15 years. A shorter term means higher monthly payments, so it's important to find a lender with the right maximum age for your situation.
Retirement Interest-Only Mortgages
If you're over 55, a Retirement Interest-Only (RIO) mortgage may be an option. You pay only the interest each month, and the capital is repaid when the property is sold (usually when you move into care or pass away). These are regulated products with consumer protections.
Pension Income Mortgages — FAQs
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Your initial mortgage consultation is free with no obligation. If you decide to proceed with an application, a broker fee may apply depending on the complexity of your case — typically £199–£299, capped at 1% of the loan amount or £650 (whichever is lower). The exact amount is explained and agreed in writing before any chargeable work begins. Lenders may also pay us a procuration fee on completion.
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