Do you have any doubts about your ability to obtain a mortgage on your own? Check out our advice for getting as mortgage-ready as you can.
Whether you’re a one-income family or a single applicant, you might think your options are limited if you’re buying a home on a single salary. However, you do have options available to you.
Can you apply for a mortgage by yourself?
If you tick all the right boxes, buying a home on your own is more than possible – it might just take a bit longer to save enough for a deposit than it would if you were buying as a couple.
Many people decide to go from renting to buying because, in some places, mortgage payments can be less expensive than rent. Whether you’re a one-income household or a single applicant, you might think that your options are limited if you’re buying a property on a solo paycheck. However, you do have possibilities available to you.
Are mortgages available to you on your own?
It’s more than possible to become a homeowner on your own provided you meet all the relevant criteria. It may simply take a little longer to save enough for a deposit than it would for a couple. As mortgage payments in some places can be less expensive than rent, many people decide to switch from renting to buying a home.
Shared Ownership
In essence, Shared Ownership is taking out a mortgage on a portion of a property while paying rent on the other portion. You can start by purchasing a share of the property that ranges from 25% to 75%, and you can continue to do so until you eventually own 100% of it.
Making use of a guarantor
Having a guarantor might make it much easier to obtain a mortgage. A guarantor is someone, generally a family member, who agrees to take over your repayments if you can’t. This should be a last resort, as you will likely be placing them under financial strain. It’s important to note that if they don’t make the payments, their home may be repossessed.
First Homes Scheme
The UK government formally established the First Homes Scheme in 2021 to help first time buyers and key workers get their first home. This is achieved by providing new build properties at a 30-50% discount. To be eligible for the plan, you must:
- Be a first time purchase (priority is given to key workers)
- You cannot make more than £80,000 per year (£90,000 in London)
- The property must be worth less than £250,000 (£420,000 in London)
- You must have a family or employment tie to the area in which the property is located
Be practical about your borrowing
When it comes to buying a home, it’s essential that you set a limit on your budget and stick to it. Consider how much you can easily afford to pay each month, while keeping your other important expenses in mind. A lender will give you an estimate of how much you could borrow, but you’re not required to borrow that amount. Allow yourself some wiggle room and be honest about how much you can comfortably spend on your own.
Do your homework
If you’re unsure about any stage of the mortgage application process, you should speak to a mortgage adviser. It’s also worth spending some time researching the mortgage process, what’s involved, and the documentation you’ll need, as well as the many types of mortgages available.
Stay protected
When purchasing a property on a single income, it’s important to have income protection in place wherever possible. This assures that if something were to happen to you or your employment, you would still be able to pay your bills and make your mortgage payments.
Use a mortgage broker
Regardless of whether you’re single or not, speaking to a mortgage broker means that you have access to expert advice for mortgages as well as any related life insurance, payment protection and even buildings and contents insurance you may need.
If you’ve got any questions or concerns about getting a mortgage on your own, get in touch with us today and we can arrange an appointment at a time to suit you.