Being single comes with a lot of positives, (girl dinners, bed to yourself, freedom). However, living life solo has its challenges. One of those challenges is getting on the property ladder with the prospect of getting a mortgage seeming like a distant dream. From a lower income, lack of time and perhaps understanding on where to get started–it’s easy to put yourself off the whole idea. So, what gives? Is it really impossible to get a mortgage when you are single?
Pour a prosecco as we have good news, with the right support, preparation and determination it is very much possible. So, settle in for a read;
What Are The Challenges Of Getting A Mortgage When You Are Single?
Applying for a mortgage when you are single is a very similar process to making a joint application. That said, the rate of mortgage applications for single people is significantly lower. This can be for a lot of reasons,
- One of which is a lower income meaning it is harder to reach the lender criteria. It can be tougher to raise a deposit on your own and manage the monthly repayments.
- Another challenge is simply overcoming the fear of taking on a mortgage on your own, there is a lot of confusion and a lack of clear guidance on the reality of costs and the process.
That is where speaking to the right people can help.
In our most recent episode of The Lawtee Podcast, mortgage broker Siobhan from Keevelia Mortgage Solutions, dishes up everything single guys and gals need to know about getting a mortgage. Her straight-talking, no nonsense advice might be just what you need to get started. Fancy a listen? Press play. Otherwise read on for the tips on overcoming the financial and emotional challenges that could be standing in your way.
What Are Some Top Tips To Secure A Mortgage When You Are Single?
Getting a mortgage when you are single is all about being smart, pro-active and having the right people on your team. If you are dreaming about finding the perfect home more than the perfect partner you are in the right place. Here are some simple tips to get started;
Save Like A Pro
For any mortgage application, the higher the deposit the better as it lowers your interest. It is amazing how the little things add up. For example, cutting back on drinks and meals out can make a big difference to your saving pot. Having a review of your spending habits can help you raise a bigger deposit so when you are ready to buy – your finances are ship, shape and shiny.
Be In The Know
There are certain schemes that may be suitable for you in helping you get on the ladder. From shared ownership allowing you to buy a share of a property to discounts on first homes, a mortgage broker can advise you on what you may be eligible for. Therefore, speaking to someone who understands the mortgage market and your circumstance can provide bespoke options that best suit your lifestyle. Additionally, mortgage jargon can be complex, from fixed rates to interest only. An experienced broker can break it down in simple language so you understand your financial responsibilities. Henceforth, set realistic expectations.
Remember You Can Improve Your Credit
Just like making small changes to your spending habits, reviewing and working on your credit rating can make a huge difference. Make sure you are up to date on payments and all your information is correct. This can help strengthen your application. If you have a not so great credit history, you can still get a mortgage. There is often an assumption that bad credit means you have no chance which is simply not the case. This is where a specialist mortgage broker can help review your history and give you the right advice. In the meantime, working on improving it can only be a good thing.
Consider A Guarantor
If you are fortunate enough to know someone who might stand as a guarantor this can open up your options. Furthermore, speed up an application. It is a decision that needs to be thoroughly thought about and carefully agreed. Speaking to family and friends who may be in a position to support you is a good place to start. It is important everybody understands their legal obligations and responsibilities before going ahead. The right guarantor can boost your borrowing potential and be a successful way to securing your dream home.
Where Is The Best Place To Start With Mortgage Applications?
Research, research, research. In order to find the best lender it is important to properly assess the market and products available. This can of course be overwhelming and confusing so having a broker by your side can be a game-changer. Not only can they save you time they can give you access to the top rates and the information you need. Brokers understand the type of loan that will work best for you and ensure you have a repayment plan you can keep up with. That means more time to get on with viewing and finding the perfect house. (The best bit)
Want The Full Scoop On Single Mortgage Applications?
Are you excited about the prospect of popping a single toe into the world of mortgage applications? Great, we have more! Tune into our Lawtee Podcast ‘The Single Girls Guide To Getting A Mortgage’. In this single special, two of our friends from Keevilia mortgage solutions spill the tea on how they turn challenges into results and what you can do to nail your mortgage application. House buying is a journey and here at Waterstone Legal we are by your side every step of the way. We work closely with our experts to provide you the best service, sweetest discounts and all the goss on how to open the doors to your new home.
All you have to do is grab a coffee and press play.
