Buying a home on your own might feel overwhelming, but it's more common than you might think. Whether you’re a first-time home buyer or a single parent, there could be many options to choose from.
If you’ve been wondering if you can get a mortgage as a single person, this guide helps to break down how much you could borrow and what the process could look like.
The Knowledge Round-Up
A single person can get a mortgage, so long as they meet the lender's criteria
Your income, credit history, and credit score can all affect what you can borrow
Mortgage affordability is based on your individual financial situation
Saving for a larger deposit can improve your mortgage options
Single-parent mortgages and shared ownership schemes may help
Check your credit score for free with CreditKnowledge before applying for a mortgage
Can a Single Person Get a Mortgage?
Yes, a single person can get a mortgage on their own. Mortgage lenders assess your financial situation, not your relationship status. As a sole applicant, you’ll need to show that you can pay the mortgage payments with just your earnings.
How Can I Get a Mortgage as a Single Person?
The process for applying as a single person is largely the same as applying as a couple, except you may need to provide additional information.
Step 1: Save a deposit
You can start browsing without a deposit, but if you are seriously considering buying a house, then it is worth having a deposit saved first. If you aren’t in a position to save a large sum of money, there are schemes available to help.
Step 2: Reach out to a broker
When starting out on your home-buying journey, it’s always worth getting expert advice and support where possible. A mortgage broker can help guide you with any questions that you might have at any stage of the journey.
Step 3: Apply for a mortgage in principle
It’s generally advisable to get your mortgage in principle before you go house hunting, so you can show proof of funds and be taken seriously as a potential buyer.
You can usually get a mortgage in principle in just a few minutes for free.
Step 4: Prepare your documents and find a property
After you’ve got your mortgage in principle, it’s time to find your home! When you’re ready to formally apply, you’ll need to provide documents like bank statements and proof of identity, so it’s important to get everything ready and in order to prevent any holdups.
Step 6: Apply for a mortgage
Once your offer has been accepted, your mortgage broker will aid you with the process. Your chosen property will need to be valued by the mortgage lender, and you will undergo a full credit check before being approved and offered a mortgage.
How Much Can a Single Person Borrow for a Mortgage?
This will depend on your income and overall affordability, but unless you have a very high income, the amount you are able to borrow will likely be less than that of dual-income applicants. However, there are lots of government-backed schemes available that can help you.
Shared Ownership
With shared ownership, you can just buy a share of a property instead of the full amount. Usually, you’ll need to put down a deposit for this, but the deposit will just be a percentage of your share.
For example:
Total cost of property = £350,000
Share of property = 40% (rent = 60%)
Cost of share = £140,000
5% deposit of share = £7,00
Your mortgage in this instance would be 95%, so you would make mortgage payments towards your share in addition to paying rent on the remaining 60% of the property.
First Homes Scheme
The first home scheme launched by the government allows first-time buyers to secure their property for between 30-50% less than the market value. This could be an appealing option for single-person mortgage applicants. An added bonus to the first home scheme is that there is no rent to pay; your payments all go towards your mortgage.
Lifetime ISA
A lifetime ISA (Individual Savings Account) can provide you with a boosted deposit towards your first home. This government initiative offers a 25% bonus to your savings (capped at £1,000 a year), which you can use to buy your first home or towards retirement.
For example:
Savings per year = £4,000
Government bonus = £1,000
Total savings = £5,000 + interest
Can I Get a Mortgage as a Single Person With Bad Credit
It may be possible, but your options will likely be more limited. Lenders will usually be more inclined to offer you a mortgage if your credit issues weren’t major or if they were a long time ago (usually over 6 years).
High street lenders may only be able to offer limited support for bad credit applicants, but there are specialist lenders who could help you if you have very bad credit. Your mortgage rates may be higher if you have bad credit, so as a single-income applicant, it may be especially important to consider whether your payments are affordable.
Can I Get a Mortgage as a Self-Employed Single Person?
Yes, but the process might be a little more complicated. Some lenders specialise in self-employed mortgages, and it is becoming increasingly common.
Here’s what you might be asked for:
Certified accounts
SA302 forms (tax year overview)
Proof of upcoming work
Proof of ID/address
Proof of deposit funds
Bank statements
How Can I Save for a Deposit as a Single Person?
Unfortunately, the deposit needed for a property doesn’t change for solo buyers. Making use of the lifetime ISA scheme could help you to boost your deposit as you can benefit from the 25% bonus and added interest. Even saving as little as £50 a month could go a long way if you are consistent with your savings and aiming for a lower loan-to-value (LTV) amount on your mortgage.
If you are in a position to do so, it could be worth asking a family member to support your deposit. You could also look into guarantor mortgages if this is a viable option, where a family member or friend backs your mortgage application. This is a complex process, but it is worth considering if you are stuck for options.
See Where You Stand Before You Apply
If you’re not quite ready to apply for a mortgage deal yet, but you’re considering it in the future, a good place to start is with your credit score. With CreditKnowledge, you can check your credit report and score for free, simulate potential score impacts if you’re considering making any big financial decisions, and much more. Sign up today and get confident with your credit.
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