A lot of airtime is given to those trying to secure a mortgage with a romantic partner. But what about if you’re single and looking to buy?
“Whether you’re struggling to meet the affordability criteria or it is taking you years to save for a deposit, there are other avenues out there tailored to helping solo buyers get on the ladder,” Jo Jingree, award-winning mortgage advisor explains.
With the month of ‘love’ here, we wanted to share the other alternative routes if you intend to buy a property without a partner.
Alternative ways to get on the property ladder
Heard of guarantor mortgages?
If you’ve got a small deposit, you’re credit impaired or your income alone is too low in relation to the size of the mortgage, a guarantor mortgage could be for you.
As its name suggests, this is a type of mortgage where a person (usually a family member) known as the guarantor, agrees to pay the mortgage if the borrower cannot.
The T&Cs differ per lender. But generally speaking, having a ‘guarantor’ can help you to get a larger mortgage because the lender will consider the guarantor’s income and/or assets/savings when assessing your application.
Thought about buying with a friend or sibling?
You don’t just have to be in a romantic relationship to buy a home with someone. Taking out a mortgage with a friend or family member can make getting on the ladder more affordable. Some lenders even allow up to three or four people on the mortgage.
“Of course, taking out a joint mortgage isn’t a decision you should take lightly,” Jo says. “Plans might change and one person might contribute more financially than the other.”
But to protect yourself, local Solicitor Adjoa Djan-Krofa from Pishon Gold says that a deed of trust can be put in place. “This is a binding legal deed setting out the different contributions or interests in a property,” Adjoa explains.
Parental gift
One of the challenges to home ownership is saving a big enough deposit — and it makes sense. According to the latest stats, the average home deposit in July 2024 stood at £41,750.
To help save a sizable deposit, some people are in the position to get some help from their family.
We’ve spoken before about The Bank of Mum and Dad, which is where parents ‘gift’ or loan their child/children money. Some parents might release equity from their home to help stump up a deposit.
We know using your own home and/or income to support a child is not a decision to be taken lightly. But according to Solicitor Adjoa, depending on which route you go down, there are ways to protect yourself (and your funds). Find out more here.
There are alternative lenders out there
Nowadays online lenders like Gen H and April Mortgages have launched to help more people get on the ladder — and quicker.
For example, Gen H offers you the chance to add an ‘Income Booster’ to their mortgage application. Similar to guarantor mortgages, the secondary person or ‘Income Booster’ can add their income, including their retirement income, to boost how much you can borrow.
While April Mortgages offers fixed rates for up to 15 years and can lend up to six times your income.
“It’s worth highlighting that these mortgages won’t be right (or suitable) for everyone,” Jo adds. “But if eligible, it’s an alternative way to help those who might not otherwise be able to buy make their dream of home ownership a reality.”
Shared ownership
Worried you won’t be able to afford a chunky deposit or your mortgage payments? Well, you don’t have to own 100% of your home to get on the property ladder.
In England, under the Government’s Shared Ownership scheme, you can buy a share of a new property (between 10 and 75% of the home’s full market value), and pay rent to a landlord on the rest. Or you could purchase an existing home through a shared ownership resale scheme.
“This could make your monthly repayments more affordable,” Jo says.
If you have a long-term disability, you might also be eligible to buy a home that meets your specific needs — like a ground floor flat.
A (mortgage) match made in heaven
Here at Mortgage Confidence we know no one size fits all. Not everyone is going to have a romantic partner to buy a home with, while not everyone is going to have a parent who is in the position to help out.
But either way, there are other options out there.
To discuss your own personal circumstances, get in touch with Jo who offers a no obligation 30-minute consultation. Jo has more than 20 years’ experience in the industry and has worked with a number of clients in that time. From solo first time buyers who are trying to get onto the ladder to those who are doing it backed by a guarantor. Get in touch to set your plans in motion.
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances, but we estimate it will be £399.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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