Moving home, single income parent

How to get a mortgage as a single income parent

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Home Mover, Single Income Parent

Juggling your career with raising a family is hard enough, without the added hassle of having to scour the market for a mortgage provider who is willing to consider your unique circumstances.

And that’s the thing. There are some more specialist lenders out there who offer competitive deals to single income families – it’s just a case of knowing where to look and understanding how to craft a winning application.

If you’re thinking of moving home, but you’re worried that your relatively low income will restrict your chances of getting a mortgage, read on for more information on what you can expect from the process, and why it’s important to enlist the help of one of our brokers from the very start.

Things to consider when moving between properties

A home mover is someone who already has a mortgaged or owned home and is moving into a new property. As a home mover, you can choose to ‘port’ your mortgage with your existing lender or apply for a mortgage with a different provider. Your mortgage broker will be able to advise you on the best option, based on your repayment history and the terms of your current agreement.

As a home mover, you are likely to have some general knowledge when it comes to finding the right mortgage and dealing with brokers. Whilst costs are important to you, you’re focusing on other factors for your move, such as achieving new lifestyle goals; upsizing to meet the demands of your growing family; or changing location due to work or family commitments.

You’re in a much stronger position than a first time buyer, because you have evidence of your ability to pay your mortgage repayments in full and on time, every month. This will put you in a favourable position when it comes to getting a good interest rate. You’re also likely to have built up some equity in your existing property, meaning you’ll be entering into a new agreement with a better loan-to-value (LTV) than before.

One of the most common problems that home movers experience is being stuck in a chain. This is the term used for a sequence of linked home purchases who are reliant on each other for the preceding and succeeding purchases; for example, those buying your house are reliant on you completing on your new home in order to move into your old one.

It’s important to stay in contact with your solicitor throughout the moving process to ensure everyone is kept up to date with potential move dates and any delays are communicated up and down the chain.

How will being a single income parent affect your chances of getting a mortgage?

Being accepted for a mortgage on a new property as a single parent can be tough, mostly due to the fact that you are unlikely to be bringing in a full-time income.

Most lenders will allow you to borrow up to five times your annual income. This means that if you are on a lower wage because you are juggling work with childcare, your borrowing capabilities will be reduced.

Some lenders can be very strict when it comes to their eligibility criteria, and although every provider will have their own scoring system, many of the High Street lenders are likely to turn you down if you are a parent with a single income. Alongside other checks, many providers will want to take your outgoings into account to make sure you have a sustainable debt to income ratio. Be wary of this when you’re putting together your application.

It’s not all bad news, though. As a single parent, you can use tax credits towards your application, including:

  • Child benefit payments
  • Income from a job
  • Tax credits
  • Universal credit
  • Maintenance payments (from the child’s other parent)

If you are a single income parent and are looking to get a mortgage, it’s vitally important that you use a specialist broker, who will be able to put you in touch with lenders who understand your situation and are willing to offer attractive rates and terms.

Why use a mortgage broker?

Let us take on the task of securing you a competitive mortgage deal that will remain affordable and sustainable for your family.

We have many years’ experience in finding and obtaining mortgages for single income parents who don’t want their personal situation to stop them from securing the property of their dreams.

We know you’re juggling a thousand different responsibilities right now. That’s why we’ve made sure we offer plenty of evening and weekend appointments, so you can fit meetings with your broker around your busy schedule. You can chat with us online, over the phone, or face-to-face – whatever suits you. We offer free, no-obligation quotes for any single income parents looking to move home, and our straightforward, no-jargon approach ensures we’re always a pleasure to work with!

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Gemma May

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