Getting a mortgage as a single parent
4th April 2017
Getting a single parent mortgage
Managing day to day life as a single parent often involves balancing work and home, getting the kids to school, making their meals and staying on top of the chores, which can be difficult. Getting a mortgage by yourself may also not be easy, but it’s certainly not impossible when you take our advice!
Use your benefits to your advantage
Being a lone parent often means your income is low, which can have a significant impact on the amount mortgage lenders are prepared to let you borrow. You need to demonstrate that you are able to keep up your mortgage repayments and your benefits can help you with this.
Child Benefit, Tax Credits and Maintenance Fees, will all be taken into account by the lender when they calculate the amount they will allow you to borrow – Make sure you keep proof of these payments in a safe place, as the lender will need to see these!
Consider Government initiatives
There are a number of Government initiatives available to help people who are struggling to buy a home get on the property ladder:
Shared Ownership: Part of the help to buy scheme and enables you to buy a share (between 25% and 75%) of a new or existing property.
Right to buy: If you have been living in social housing for more than 3 years, then you could be eligible to buy your home at a discounted price from your local council.
Bank of Mum and Dad
If you are struggling to raise a large enough deposit, a close family member may be able to help you:
Guarantor mortgages: A parent or close family member guarantees either a proportion or the entire mortgage debt and are ultimately liable for any repayments that are missed. Your Guarantor will however need to be able to either cover their mortgage and their agreed share of yours or have the majority of their mortgage paid off, and have a good few years left in employment ahead of them.
Family Springboard mortgages: A more popular option that enables a member of your family to provide 10% of the purchase price as security. If you keep up your repayments, they will receive their money back with interest.
Get specialist single parent mortgage advice
As award winning mortgage advisors, we specialise in providing mortgage advice for complex situations and have helped many single mums and dads acquire a mortgage. We talk you through all your available options and tell you how much you can afford to borrow at no cost or obligation to you, so get in touch!
We appreciate that your time is likely very precious as a busy single parent, and therefore offer our advice late into the evening on weekdays, so you can always give us a call after the little ones have gone to bed!