BELFAST CITY CENTRE: 028 9013 7392 | EAST BELFAST OFFICE: 028 9560 9410 | ORMEAU ROAD, BELFAST: 028 9521 9349 | LISBURN RD BELFAST: 028 9521 9351 | DROMORE: 028 9210 6060 | LISBURN: 028 9279 4300 | GLENGORMLEY: 028 9072 7636 | ARMAGH: 028 3743 0770 | LURGAN: 028 3898 4004 | DUNGANNON: 028 8747 0270 | COALISLAND: 075 6180 7334 | COOKSTOWN: 028 8673 1055 

Contact Your Local Branch

BELFAST, CITY CENTRE: 028 9013 7392
BELFAST, EAST OFFICE: 028 9560 9410
BELFAST, ORMEAU ROAD: 028 9521 9349
BELFAST, LISBURN ROAD: 028 9521 9351
DROMORE: 028 9210 6060
LISBURN: 028 9279 4300
GLENGORMLEY: 028 9072 7636
ARMAGH: 028 3743 0770
LURGAN: 028 3898 4004
DUNGANNON: 028 8747 0270
COALISLAND: 075 6180 7334
COOKSTOWN: 028 8673 1055

Securing a Home Loan as a Single Parent

by | Aug 3, 2023 | Uncategorized | 0 comments

As a single parent, you might be worried about your eligibility to secure a home loan. The process can indeed be more challenging compared to those applying for a joint mortgage or singles without dependents. Yet, take heart. There exists a broad spectrum of lenders sympathetic to your situation and ready to assist you in stepping onto the property ladder. Here at The Mortgage Clinic Lisburn, we’re dedicated to helping you navigate this journey.

We’ve prepared this comprehensive guide to shed light on all aspects of obtaining a mortgage as a single parent.

Understanding the Challenges: The Unique Barriers for Single Parents

Embarking on the journey to secure a home loan is not without its trials, and as a single parent, you might encounter some unique challenges. At The Mortgage Clinic Lisburn, we believe it’s crucial to understand these hurdles so we can help you navigate them effectively.

Lenders typically gauge your borrowing capacity through an affordability calculation. This evaluation, usually based on your annual income, can become a challenge if your earnings are on the lower side or if you have multiple dependents.

Secondly, the income assessment during the mortgage approval process might not always consider benefits, which forms a substantial part of many single parents’ income. As such, despite your actual ability to repay, some lenders may view your application unfavourably if they perceive your income as insufficient.

Credit history can pose another barrier. If you’ve faced financial difficulties in the past, leading to poor credit, it can add another layer of complexity to your mortgage application.

These are just a few of the unique challenges single parents might face when applying for a mortgage. However, remember that each obstacle has potential solutions.

Our role at The Mortgage Clinic Lisburn is to help you understand and overcome these hurdles, moving you closer to securing your home loan.

Can I Get a Mortgage as a Single Parent?

Indeed, securing a mortgage as a single parent is possible, but it does come with its unique set of hurdles that might complicate the process.

Every lender, without exception, will permit single parents to submit a mortgage application. Nevertheless, approval may prove challenging with certain lenders due to several factors:

  • Rigorous affordability assessments.
  • Disregard of benefits as a source of income.
  • Your earnings may not reach the lender’s minimum income requirement.
  • Suboptimal credit history or poor credit ratings.

Should I use a Mortgage Broker for Advice?

During the mortgage application process, the lender will perform an affordability analysis. An integral part of this affordability calculation usually involves the number of children under your care. The lender takes into account the costs associated with raising each child, which can ultimately lower the loan amount you’re eligible for.

While some lenders accept benefit income as part of your total earnings, others may not consider it at all. The reason being, your income might be deemed too low for the lender to have confidence in your ability to keep up with mortgage repayments.

As The Mortgage Clinic Lisburn, we aim to guide you through these intricacies and provide the best possible advice for your situation.

Dealing with Low Income or Bad Credit: Potential Solutions

Navigating the world of mortgages can be particularly tough when you’re dealing with a low income or a poor credit history. Yet, don’t despair. Here at The Mortgage Clinic Lisburn, we believe there are viable solutions for every challenge, and we’re committed to helping you explore them.

For low-income scenarios, one of the most effective approaches is to look for a mortgage product specifically designed for lower-income borrowers. There are lenders out there who understand the unique circumstances faced by single parents and are willing to work with a wider range of income levels.

Exploring government-backed loans can also be a beneficial option as these often have more lenient income requirements.

If poor credit history is your main concern, the first step is to understand your credit report thoroughly. Look for any inaccuracies that might be negatively impacting your credit score and dispute them if necessary.

Furthermore, consider working towards improving your credit standing by making regular, on-time payments and reducing your overall debt.

Remember, it’s also crucial to consider the role of a mortgage broker. A professional broker can guide you through these processes, help you find the most suitable lenders, and provide advice on how to improve your chances of approval.

While these solutions may not eliminate all obstacles, they can certainly enhance your prospects of securing a home loan as a single parent. At The Mortgage Clinic Lisburn, we’re here to support you every step of the way.

Pre-application Checklist: Preparing for Your Mortgage Application

Before diving headfirst into the mortgage application process, it’s crucial to prepare thoroughly. This not only enhances your chances of approval but also helps you navigate the process more smoothly.

At The Mortgage Clinic Lisburn, we’ve put together a pre-application checklist to aid single parents in their journey towards homeownership.

  • Understanding Your Financial Position: It’s essential to have a clear picture of your financial situation. This includes understanding your income (including benefits), outgoings, existing debt, and savings.
  • Check Your Credit Score: Knowing your credit score beforehand allows you to rectify any inaccuracies and address any issues that might affect your application. Regular payments towards existing debt can help boost your score over time.
  • Documentation: Prepare all necessary documents. This typically includes ID proofs, income verification (like payslips or benefit statements), bank statements, and a record of your outgoings. Having these documents ready can speed up the application process.
  • Budgeting: Have a realistic budget that outlines what you can comfortably afford to pay each month towards a mortgage, without sacrificing your standard of living or financial stability.
  • Seek Professional Advice: Consult with a mortgage broker or financial advisor. They can provide invaluable guidance tailored to your situation, helping you identify suitable lenders and mortgage products.
  • Research Government Assistance: Look into any government schemes or programmes that can help single parents secure a mortgage. These could offer benefits like lower deposit requirements or interest rates.
  • Choosing the Right Mortgage Product: Understanding different types of mortgages and choosing the one that best fits your needs is critical. A broker can assist with this process.

Remember, this journey might seem overwhelming, but preparation is key. At The Mortgage Clinic Lisburn, we’re committed to supporting you throughout this process, turning your dream of homeownership into reality.

Helmut Elstner

Managing Director – Independent Mortgage Broker and Insurance Advisor

Helmut started working in financial services in early 2012 and founded The Mortgage Clinic in Belfast in early 2015. He specialises in all types of mortgages from First Time Buyer, Co-ownership, Self Build, Home Movers, Remortgages, Debt consolidation, to Buy to Let.

Three Best Rated Winner 2021
Winner Mortgage Broker of the year 2020
Top Rated Advisor 2021 on Vouchedfor