Darlington Building Society has provided a residential mortgage to a first-time buyer approaching retirement whose income came primarily from a pension.

The case required a detailed affordability assessment because the applicant, who is based in the UK, relied on pension rather than earned income.

Darlington assessed whether the pension income would remain sustainable throughout the mortgage term and considered the applicant’s wider financial position.

The society said the case reflected a change in borrower profiles, with more first-time buyers entering the property 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.”