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Single Parent Mortgage

Raising a family alone is one challenge, qualifying for a mortgage another! Our single parent mortgage guide explains all the vital elements, from proving your income to showcasing affordability.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin2023-05-09
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Single Parent Mortgage

Buying a property alone as a single parent can be a daunting process - especially if you struggle to demonstrate affordability or have a low deposit.

Revolution Brokers works with an outstanding network of specialist and mainstream lenders, negotiating mortgages for people who need help to purchase their home.

In this guide, we run through some of the challenges and options available. For bespoke advice and help finding the home loan you need, give us a call on 0330 304 3040, or drop a message to [email protected]

How Can I Get a Mortgage as a Single Parent?

There isn't a specific single parent mortgage, so the key here is to calculate what you can afford and work with a broker who can find the right lender and mortgage product for your circumstances.

Affordability is usually the most significant issue since you need to prove you can keep up with the repayments on a sole income.

Lenders will consider:

  • Your income - with the maximum mortgage usually being based on three or four times your annual income. Higher multiples are available if you meet the other eligibility criteria.
  • Affordability assessments - how much you spend a month, whether you have other debt, and how easily you can keep up with the costs.
  • Other income sources - if you have other income, such as child benefit, maintenance payments or tax credits, you can find lenders who include these revenue streams in the assessment and make it more likely you will be approved for a mortgage.
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How Much of My Child Benefit Can I Use on a Single Parent Mortgage Application?

Lenders are all different and have policies about how much benefit income they will include in the affordability assessment process.

It is therefore essential to consult a broker who can recommend a lender with a suitable policy.

For example:

  • If you work part-time and earn £10,000 a year, your mortgage offer will probably be between £30,000 and £40,000.
  • If you can include your benefits, say at another £10,000 a year, you will double the amount you can borrow on a mortgage.

Can I Get a Single Parent Mortgage with a Bad Credit Rating?

Bad credit is always problematic when it comes to a mortgage application. A lot depends on what issues you have experienced, when they occurred, and whether you have since repaid your debts.

The best solution is to access your credit record before applying to ensure this is up to date, and any errors have been corrected. If you have severe credit issues such as a CCJ or repossession, which is close to expiring from your credit history (after six years), it might be well worth waiting until that happens before applying for a mortgage.

There are specialist bad credit lenders out there, too, so with an independent broker's help, it usually is possible to find a mortgage even in challenging scenarios.

What Help Can I Get to Afford a Single Parent Mortgage?

In the UK, several mortgage schemes might help you afford to purchase a property.

  • Help to Buy equity loans are available for first-time buyers purchasing a new build and require a 5% deposit. You can borrow 20% of the property value, interest-free, for five years. That means having a substantial 25% deposit, making it easier to find a mortgage and secure more competitive interest rates.
  • London Help to Buy allows a higher 40% equity loan, given the increased cost of purchasing a first property in the capital.
  • Shared Ownership is designed to help low-income households buy their property. You can purchase a share, between 25% and 75%, of a property and pay the housing association or local authority reduced rent for the balance they own. Most Shared Ownership mortgages require a 5% deposit, although you can find 100% deals with a broker to negotiate on your behalf.
  • Low deposit mortgages are available if you don't have the 15%+ deposit most lenders look for. Rates depend on the lender and are usually available through a whole-of-market broker.
  • Guarantor mortgages mean that a family member can leverage their property or savings to offer security against your mortgage. They are responsible for your mortgage payments if you fall behind and will need a clean credit rating. Grantor mortgages are available up to 100% if you don't have a deposit.
  • Joint borrower, sole proprietor mortgages are another alternative to a guarantor mortgage. In this loan, you apply with up to three other people (usually family members), and all are responsible for the mortgage - however, the sole proprietor is the only party named on the deeds and who owns the home.
  • Most mortgage lenders accept gifted deposits from family members. Suppose the deposit is from outside of your immediate family. In that case, it might not be suitable with some mortgage providers since they have strict rules about verifying the source of property deposits.
  • Personal loans are usually not a good idea - the credit checks and marks on your credit file might make it harder to get a mortgage approved. It also demonstrates irresponsible borrowing, and you cannot usually use a loan to pay a deposit. However, if you find it impossible to save a deposit and cannot use any other option, some specialist lenders might accept this provided they can see that you can afford the repayments on both the loan and the mortgage.

Professional Help with Single Parent Mortgages

While getting a mortgage as a single parent can be challenging, it is certainly possible. We strongly advise getting in touch with the mortgage advisors team on 0330 304 3040 or via email at [email protected].

There are many financial support schemes and alternative mortgage products available, so there is usually a way to help you get onto the property ladder while staying safely within your budget.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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