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Getting a single parent mortgage

Being a single parent isn’t easy. Having to balance work and home whilst bringing up the kids single-handedly can be daunting in itself.  When you start to consider getting a mortgage as a single parent, it can be hard to know where to begin.

Use your benefits to your advantage

Mortgage lenders often use income as the starting point in deciding what they will allow you to borrow.  As a lone parent, income can often be low. The good news is that there are lenders out there who will take into account several streams of income.

So if you only have one main income, or even are earning a secondary income with someone like Utility Warehouse, the chances are that you can take that into account when applying for a mortgage.

This also stretches to benefit income which you could help you borrow more.

Although lenders tend to have different rules about taking benefits into account, Child Benefit, Tax Credits and Maintenance Fees can all count towards your incoming when they assess your affordability.  Using a mortgage broker will ensure that you will be able to borrow the maximum amount you can.  This is because a mortgage broker will know which lenders to approach depending on the benefits you are receiving.

Mortgage for single mums
Being a single parent shouldn’t get in the way of you getting a mortgage.

Shared Ownership and Right To Buy

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: Your local council may allow you to buy your home at a discounted price.  You’ll need to have been living in social housing for over 3 years to qualify.

You can read more about Help to Buy mortgages here.

Bank of Mum and Dad

Another thing to consider is the Bank of Mum and Dad.  Several lenders will allow someone else to put money towards your deposit.

Family Springboard mortgages: This is the more popular option which allows someone else to provide 10% of the purchase price as your deposit. As the money is kept in the name of the helper, they will receive their money back with interest after five years.  This is assuming you’ve kept up your repayments, of course!  The helper providing the 10% deposit can be mum, dad, family, friends, loved ones or anyone who’d like to help someone they know to buy a home.

Guarantor mortgages: This is when a parent or close family member guarantees either some or all of the mortgage debt.  This is the less popular option as the guarantor is ultimately liable for the mortgage and therefore would have to pay for any missed payments.  Unlike the Family Springboard mortgage, the guarantor does not get their money back with interest. Realistically, in order to qualify, the guarantor will need to meet the lender’s affordability criteria and prove that they can cover their own mortgage as well as the portion of your mortgage that they are guarantor for.

Single parent mortgage advice

We have a wealth of experience in obtaining mortgages for single parents.  Whether you are a single mum or a single dad, Dan The Mortgage Man and the team can talk you through your options.  If you have any questions or queries about getting a mortgage, our expert advice is free with no obligation.

Not only that, but our working hours are flexible enough that we can talk to you throughout the day when the toddlers are napping, in the evening when they’re in bed or over the weekend.

Contact Dan The Mortgage Man

Wirral Office: 0151 601 4234
Essex Office: 01245 806 555
Mobile: 07837 820 894

or contact us online by clicking here.

Find out more about Dan the Mortgage Man

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