Single person mortgage, many have been asking whether they can obtain a mortgage like that. In comparison to combined mortgage applications, the application process might also be relatively straightforward because there is only one applicant to consider.
The following situations call for single applicant mortgages:
- New purchaser
- Candidate who is divorced or separated
- Investing in a buy-to-let partner who is either unemployed, earns little, or has a poor credit history
Remortgaging to get rid of someone
Do not become anxious if you are considering obtaining a mortgage but are concerned that you will not be approved. Over the years, our counsellors have gotten some fantastic bargains for single applicants.
The majority of lenders are more interested in whether the mortgage is reasonable than they are in how many applicants are participating.
Can a lone individual obtain a mortgage?
Obtaining a mortgage as a single candidate shouldn’t be a concern. In reality, a lot of first-time purchasers make the entire property purchase themselves. Single homeowners rarely require a huge family house, so getting started by purchasing a pleasant home is typically quite doable.
The acquisition of a combined mortgage has benefits. For instance, if both applicants are employed, your borrowing capacity will double. It may also be simpler to save for a down payment.
An element of risk is there in both single-person and joint mortgages, regardless of your goals. Absolutely nothing is wrong with applying for a mortgage as a single person.
If you’ve ever leased on your own, you are well aware of the additional expenses like council tax and utilities in addition to the monthly rental payment. You may even be able to save more money by having a mortgage because monthly mortgage payments are occasionally less expensive than rent.
In contrast, you could require a mortgage for a buy-to-let property. Since many successful landlords control their entire property portfolios alone, lenders rarely object when a single applicant submits an application.
If I obtain a mortgage on my own, how much money can I borrow?
Lenders and advisors will both assess the affordability of the mortgage you’re seeking for. The primary stress test used to determine a person’s eligibility for a mortgage is this one. Of course, there are other checks, like credit checks and employment information, which may also have an impact on how much you can borrow.
Lenders will compute your income and your spending patterns to determine what is affordable. It’s important to keep in mind that some lenders do use slightly different approaches for evaluating applications. For instance, whereas other lenders would not, one lender may consider wages from overtime and bonuses. Lenders will calculate your outgoings in different ways.
The amount you can borrow might be significantly impacted by choosing the most appropriate lender. Additionally, there is a wide range in the prices offered. The typical loan amount is three to five times your income. However, since each lender uses a different formula to determine affordability, you can receive a much higher offer from one lender than from another.
Your assessment will take into account how much debt you currently owe. Any credit card debt as well as loan agreements like car financing will lower your ability to borrow money. Don’t let that discourage you from submitting a mortgage application. Simply choosing the appropriate lender for your situation can lead to some fairly attractive discounts.
You could apply for a mortgage with a guarantor if your affordability is ineligible for approval. Since employing a guarantor wouldn’t convert your mortgage to a combined mortgage, you would still be a lone homeowner.
What if I work for myself?
If you work for yourself, lenders will typically evaluate your income based on your declared net profit. Lenders normally require a three-year history of accounts. Nevertheless, a few lenders may accept mortgages with accounts that are open for a year.
You must hold off on applying for a mortgage if you haven’t yet reported your income to the HMRC.
As a director, partner, or sole proprietor, you can all qualify for mortgages for the self-employed. Nevertheless, regardless of the applicant’s job status, there are mortgages accessible for singles.
If I submit an application alone, will I require a sizable deposit?
When an individual borrower applies for a mortgage alone, they frequently believe they’ll need a greater down payment than usual. Simply said, this is untrue. Sometimes a single applicant’s application is more effective than a group application.
With a 5% down payment, it is possible to obtain a “one-person mortgage.” Additionally, there are government financing programmes like Help to Buy and Shared Ownership that can make climbing the property ladder much simpler.
It’s frequently encouraged to save up as much down payment as you can. This is due to the fact that you will have more lender options the larger your deposit is. You can contact more lenders if you aim for a 10% deposit as opposed to a 5% deposit. You can approach more lenders if you have a 15-20% deposit rather than a 10% deposit or less, and so forth.
The finest mortgage bargains may also be unlocked with larger deposits. However, if you approach the appropriate lenders, you can still obtain a fair bargain on a 95% mortgage.
It is possible to obtain a mortgage with a donated deposit from a family member or relative if you are having trouble saving money. This is the best option when you only need a small increase in your down payment to qualify for an excellent mortgage package.
You can get assistance from our consultants in locating lenders with the finest offers. You can ask a question to get going.
Can someone with bad credit obtain a mortgage on their own?
Even if you have poor credit, you can still obtain a mortgage. Lenders will evaluate the severity and recentness of your credit difficulties. The credit issues should be as ancient as possible.
Credit problems that are more than six years old shouldn’t actually affect how your mortgage application is evaluated. Although recent credit problems can be a challenge, you should be able to get through them with the help of the correct advisor. This is contingent upon fulfilling the remaining requirements of the lender.
Going to a high street lender is not suggested if you have bad credit. This is due to the fact that the vast majority of reputable lenders often reject candidates with poor credit. A specialised counsellor with knowledge of unfavourable credit and connections to specialised lenders will be to your advantage.
Even if I’m married, can I still apply as a single applicant?
Married couples can apply for a mortgage in one person’s name, but it’s not typically recommended. This is due to the fact that few lenders will permit this, and those that do may do so at hefty costs and above-average rates.
Additionally, when there are two buyers, it is quite difficult to apply as a single applicant. Lenders require complete transparency and won’t consider “special” arrangements. For instance, approaching a specialised lender as joint applicants may be feasible if one of the partners has poor credit.
The lenders that are available for your situation and the potential interest rates that are offered can be checked by our consultants.
Single person mortgage brokers and guidance
With the appropriate guidance, securing a mortgage on your own can be simple, whether you’re wanting to buy a home to live in or a buy to let property.
When seeking to get the biggest loan possible, it’s crucial to demonstrate your income at the highest possible level. Furthermore, when borrowers approach a lender directly, choosing the best one is frequently largely on luck.
An counsellor can be very useful. First, we’ll make sure your application accurately depicts your profits. This can undoubtedly aid in obtaining the highest possible mortgage amounts. Brokers will also review the specifics of your application and, based on the kind of mortgage you require, choose the best lenders.
A good bargain can help you save hundreds of pounds each month. The savings might total thousands of pounds over the course of your mortgage. Your financial situation can potentially be made or broken by choosing the correct mortgage.
To find out which bargains you’ll qualify for, ask a financial expert. In case you have a specific question, you can also get in touch with our experts.