Are you looking to get on the property ladder as a single buyer? You're not alone! Many people dream of owning a home, but sometimes it can seem like the usual route to homeownership is heavily geared towards couples or families.
In this guide, we'll look at what single people can do to make the most of their opportunities, how you might manage to finding an affordable home, the pros and cons and how we can help you find the perfect property.
Can a Single Person Get a Mortgage?
Absolutely! Mortgage lenders are more than happy to offer mortgages to single applicants as long as you can prove that you can afford the repayments. While it wouldn't be right to sugar-coat the challenges, having just one income instead of two can certainly have an impact affecting your chances.
Here's what lenders typically assess regarding your application:
First and foremost, your income should be sufficient to fund your loan amount with a manageable repayment.
Your credit history – a good credit score improves your chances of securing a mortgage.
Your employment – stable income between your monthly spending on rent, bills, loans, and other expenses needs to remain an affordability.
Your deposit – obviously, the bigger your deposit, the better your mortgage interest rates.
So, if you're serious about your mortgage options, ensure that you can say 'yes' to a more significant single income.
How Much Can a Single Person Borrow?
The amount you can borrow depends on:
- Your income and job stability
- Your existing financial commitments
- The size of your deposit
Many lenders will multiply base incomes (before tax and bonuses) by roughly a multiple between 4.5 and 5 to calculate the maximum mortgage amount. For example, if you're earning £30,000, this could be potentially up to £150,000.
If you're unable to afford a property on your own or in your desired location, below we've highlighted some potential alternatives to help you get onto the property ladder or increase your borrowing capacity, that might be worth exploring.
What Can a Single Person Afford in a Home?
If you're searching for a property alone, it's crucial to have a realistic frame of mind when it comes to location, size and amenities.
Be Realistic About Your Budget
Consider starting in a more affordable area or maybe a slightly smaller home to make single homeownership more feasible. It might mean making some compromises on location and possible renovations.
Explore Government Schemes
The government offers various schemes designed to help first-time buyers:
Help to Buy Scheme – Although this has now closed for new applications.
Shared Ownership – Allows you to buy a percentage of a property and pay rent on the remaining, thus providing more affordability.
First Homes Scheme – Offers a minimum 30% discount on new homes to help you get onto the property ladder.
Consider a Deposit Boost from Family
The 'Bank of Mum and Dad' can help in several ways:
A gifted deposit – Parents can provide financial assistance to boost your savings.
Acting as a guarantor – They can guarantee the mortgage, potentially increasing your mortgage chances.
A joint borrower, sole proprietor mortgage – Your family's income can be considered without them being listed as owners.
Use a Specialist Mortgage Broker
Navigating the often perplexing mortgage landscape as a single buyer. A mortgage broker can help you find the best deal suited to your income, lifestyle, and circumstances.
Final Tips For Buying a Home Solo
To make your solo homeownership journey smoother:
Plan your credit score improvement – by paying bills on time and reducing debt.
Consider alternative buyer schemes – Shared ownership might be the most viable option available.
Factor in other expenses – budget for solicitor fees, mortgage fees, and moving expenses.
Get expert advice – Speak to estate agents and mortgage brokers to discover all available options.
Ready to Buy? Let's Get Started!
At JW Wood Estate Agents, we're here to help single buyers find the perfect home. Whether you're just starting or already actively house hunting, we'll give you the confidence you need, every step of the journey.
