State Pension and guaranteed pension income
Almost every lender accepts the UK State Pension as a reliable income source. For the 2025/26 tax year, the full new State Pension is around £230 per week. Lenders count it in full because the government guarantees it and it rises each year under the triple lock.
Defined benefit (final salary) pensions and annuities get a warm reception too. Both pay a fixed, guaranteed income for life, which is exactly the kind of certainty a lender looks for. If you hold a defined benefit pension, ask the scheme for an up-to-date statement showing your annual income.
Pension drawdown and defined contribution pots
Draw income from a defined contribution pension pot, such as a SIPP or a workplace pension, and lenders get more cautious. Most want to be satisfied that the pot is big enough to keep paying out across the full mortgage term without emptying.
Some lenders apply a sustainable withdrawal rate, usually around 3.5–4% a year, to your total pot to work out the income they will accept. Others ask to see regular withdrawals over the past 12 months or longer. Practice varies a lot from lender to lender, which is where a broker earns their keep.
Other income sources lenders may accept
Beyond pensions, a lender might count rental income from buy-to-let property, part-time or consultancy earnings, investment dividends, and regular income from trusts or maintenance agreements. Each one sets its own policy on which of these secondary sources it accepts, and what percentage of them it will use.
The strongest applications bring together several documented income streams. A State Pension alongside a private pension and some modest rental income, for instance, reassures a lender that you can cover the repayments even if one source dips.
Your broker will look at all of your income and steer you toward lenders whose criteria fit your particular mix of earnings. Going straight to the right lender avoids wasted applications and protects your credit score.