Getting a mortgage at any age, especially if it’s your first mortgage, is a daunting and exciting process. If you’re doing the process on your own, it can be even more daunting, and you may be wondering if it’s even possible.
You’ll be pleased to know that there are many options available to single-income borrowers, including whether you are a single-income family or a single applicant, so let’s look at how getting a mortgage could be possible for a single person and some things you need to consider along the way.
I’m Single/ A Single-Income Family: Can I Get a Mortgage?
It is actually very common for lenders to grant mortgages to single applicants and although overwhelming and possibly difficult, it’s more than doable. Lenders need to know that you’re not a risk to them and their business, therefore it’s important you tick all the right boxes. The benefit of a double income isn’t available to you, so it may take you longer to save for a deposit, but other than this, it is entirely possible for you to get a mortgage as a single person or single-income family.
Things to Consider if You're a Single Person Applicant.
It’s important to do research when borrowing money, whatever your circumstance but with a single-person income, there are some specific points you would need to consider beforehand.
Research & speak with a mortgage advisor.Spend some time to understand your options, including the types of mortgages available, what’s involved in the mortgage process, and what will be asked of you. If you find getting a mortgage overwhelming or are unsure about any stage in the process, then gaining advice from a professional mortgage advisor can be a lifesaver (or a money saver!)
Save as much as possible.The larger deposit you have, the more options available to you, so it pays to save up as much as possible before entering a mortgage deal. Again, lenders need to know you pose no risk, so the more equity you have, the lower that risk is, whether it’s a deposit or value in your home. Also, with products like the 5% mortgages available today, saving for a deposit is a lot easier than it used to be.
Clear existing debts.Your monthly expenditure is just one of the variables that lenders will use to determine your mortgage affordability. The smaller your expenditure the more attractive you are as a potential customer, so clearing off things like credit card bills, unarranged overdrafts, and any other current debts can be a great way to increase your chances of getting a mortgage.
Set realistic expectations.Consider how much you can comfortably afford each month on top of your other necessary expenses and base your borrowing limit on this. The figures provided by lenders are indicative of what you could borrow based on set variables, but this is not the amount that you have to borrow. Lowering this amount and giving yourself some leeway, will give you an increased sense of security when it comes to your monthly repayments.
Consider income protection.As a single-person borrower, the responsibility will solely be on you to ensure your mortgage repayments are made every month. Using income protection can help by ensuring that you can continuously make these repayments, even if something happens to you or your job.
I Have a Single Income: What are my Mortgage Options?
There are plenty of mortgage options available today for single-income borrowers, the best advice would be to talk to a mortgage advisor, as they have the knowledge of the market to ensure you understand your options. For clarity and peace of mind, here are some options that are available now:
- First Homes Scheme – launched in the UK back in 2021 to assist first-time buyers and key workers purchase their first property, by offering new builds to first-time buyers and a 30-50% discount to key workers. To qualify you must be a first-time buyer (key workers prioritised), earn less than £80,000 (£90,000 in London), have the home in question not worth more than £250,000 (£420,000 in London), and have a connection to the area the property is located, such as family or employment.
- Shared Ownership – this means you can get a mortgage on part or a share of the property, whilst paying rent on the remaining share. It is possible to buy between 25% and 75% and slowly increase the amount you buy until you eventually own 100% of the property.
- Use a Guarantor – this is a person, usually a family member, who agrees to continue to pay your mortgage if you fail to for whatever reason.
Discuss Your Options with a Mortgage Broker.
If you are looking to get a mortgage as a single person or as a family with a single-person income, then Taylormade has the experience and expert advice you need to make well-rounded and advised decisions on the type of mortgage that will suit your circumstances, as well as related life insurance and payment protection.
At Taylormade, we are an impartial and professional mortgage broker that has full, comprehensive knowledge of the mortgage market and access to the best deals on the market today, whatever your situation.
So, if you would like to speak to a friendly mortgage advisor here at TaylorMade, get in touch today, and let’s see how we can help you navigate your way to getting the right mortgage for you.
