Darlington BS backs first-time buyer using pension income
Darlington Building Society has completed a residential mortgage for a first-time buyer approaching retirement whose income was primarily derived from a pension.
Darlington Building Society has supported a first-time buyer approaching retirement to secure a residential mortgage using pension income.
The UK-based applicant was looking to buy their first home, with income primarily derived from a pension. The case required a more detailed affordability assessment than would typically be applied to earned income.
Darlington assessed the sustainability of the pension income over the mortgage term alongside the applicant’s wider financial position.
The society said the case reflected a broader change in borrower profiles, with more first-time buyers entering the market later in life and relying on non-standard sources of income.
Chris Blewitt, head of mortgage distribution at Darlington Building Society, said: “This is a good example of where assumptions can close cases off before they have even really been looked at properly.
“There is still a tendency in the market to treat pension income as a secondary source, but for many borrowers it is actually one of the most consistent forms of income they have.
“What matters in cases like this is not just the income itself, but how it is being used and managed over time. Taking a more hands-on approach allows us to look at the full position rather than relying on a single metric.
“For brokers, the key point is that these cases do not always need to be ruled out early. When there is an opportunity to step back and look at the full picture, there can often be a route forward.”
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