How to getting a mortgage when you’re single

Tips for getting a mortgage when you’re single

Applying for a mortgage when you’re single or as a one-income family doesn’t necessarily mean your options are limited or that you run a higher risk of being declined.

The main difference between applying for a one-income mortgage compared with a two-income mortgage is the amount of preparation and research required to give your application the best chance of being accepted.

How to give yourself the best chance

If you’re new to the mortgage and property world, you first need to consider what lenders are looking for in an ideal applicant. A lender will check your credit score, your income and your spending habits. You will also be put through a 'stress-test' where lenders calculate how much you are eligible to borrow.
Reviewing your current financial status and managing your lending expectations is a good first step when considering your mortgage options.

getting a mortgage when single

Save, save, save

Our next piece of advice is to save as much as possible. The greater the deposit you have, the more favourably lenders will view your application.

Calculate how much you can borrow here

Saving for a home

Bank of Mum & Dad

With many people struggling to find the money to put down a cash deposit, it comes as no surprise that so many are leaning on their parents to help them find the money.
A recent report from Legal and General reveals that the Bank of Mum and Dad now contributes to 26% of funds to the UK housing market and if Mum and Dad were an actual bank, they’d be the 9th biggest lender in the market.
However, if you’re planning on your parents helping you financially, you need to be aware that there’s a set procedure to follow, as this money has to be officially “gifted”.
bank of mum and dad

Other options

Not everyone is placed in an ideal situation where they can save for a large deposit or have it gifted by their parents, so there are alternative schemes available for those wanting to get on the property ladder.

Help to Buy – A government equity loan scheme, due to run from 1 April 2021 for 2 years, but open for applications from 16 December 2020. With this scheme, you can borrow 20% of the purchase price interest-free for the first five years as long as you have at least a 5% deposit. The latest scheme operates with regional price caps and is only available for First-Time Buyers purchasing a new build property.

Shared Ownership - This type of borrowing is targeted at First-Time Buyers with smaller deposits. In this scheme, you can buy a share of a property and pay rent on the rest.

Seeking advice

Applying for a single person mortgage requires a lot of research and can be very time-consuming

At The Property Centre, we have an independent professional mortgage adviser in each of our 9 branches, all of whom use a mortgage search system which is updated daily and who have access to over 12,000 mortgages from over 90 UK lenders. They also have access to deals not available to the High Street lenders.

If you’re looking for single income mortgage advice, our expert mortgage advisers can search the whole of the mortgage market at the touch of a button and walk you through the entire process. Better still, they can create your application and help with all the paperwork, giving you the very best chance of your application being approved.

Request a mortgage appointment today and take a step towards homeownership.