Tips to getting a mortgage when you’re single
If you need to buy on one salary, either as a one income family or as a single applicant, you may think your options are slightly limited. You will probably need to work a little harder to get the finances you need in place, but your dream home is well within reach!
Here are Park and Bailey’s top tips on how to buy your own home with one income.
Saving can seem like an endless task when you’re trying to buy a property for the first time and by yourself, but make sure that you stick with it, as it will be worth it in the end! Usually the bigger deposit you have, the more attractive your business will be to lenders, and the more equity you’ll have — the lower risk you’ll also represent. Having a larger deposit also means that you will have a lower loan to value, which will give you access to a wider variety of mortgage deals.
We can all get carried away when it comes to buying consumer goods, but when it comes to buying a property it really is important to make sure you consider your limit, and try to stick to it. It is best to keep track and look at your budget. Consider how much you can comfortably pay each month without forgoing your other expenses. A lender will advise you regarding the maximum amount you can afford to borrow.
Be sure to listen to any advice, as it will almost certainly be helpful unless you are already experienced in financial matters. It’s also worth doing some research to get a basic understanding of the mortgage process and the types of mortgages that are available.
A lender will establish what you can afford based on a number of factors, including your committed monthly expenditure. If you can reduce this amount by clearing unnecessary debt such as an outstanding credit card balance, you’ll improve your eligibility.
When buying a home with one income, it is important to ensure that you have income protection in place, so if something was to happen to you or your job, you can continue to make your repayments.
Using a mortgage broker means that you will have access to expert advice for mortgages as well as any related life insurance, payment protection and even buildings and contents insurance you may need.
By following our tips, you should secure a home with even one income and if you’re single!