Getting a Mortgage As a Single Parent

Bringing up children on your own is tough, before adding a mortgage application on top!  You might be worried about getting accepted on a single income, or how having dependents affects your chances of being accepted.

In this guide, you’ll find all you need to know about getting a mortgage as a single parent, and the different factors to consider when applying.

Can I get a mortgage as a single parent?

Yes, it’s possible. You won’t have the benefit of an extra income, so you’ll need to be able to prove you can afford the repayments by yourself. If you’ve been renting, you’ll know all about the extra costs that come with being the only adult in a household. However, your monthly mortgage repayments could be cheaper than your rent, so you might be able to save more money as a homeowner.

Use our Mortgage Repayments Calculator to see what your mortgage repayments could look like.

How much can I borrow as a single parent?

How much you’ll be able to borrow will depend on a few things. When deciding whether to give you a mortgage, lenders will check to see if you can afford the repayments without struggling. Different lenders have different lending criteria, but generally they’ll check:

• Your income – the higher your income, the more you should be able to borrow

• Your credit report – a positive credit history will be more appealing to a wider group of lenders

• Your deposit – putting down more money upfront means you’re asking to borrow less and could get the better interest rate deals

Our mortgage repayment calculator (see link above) will also show you how much you could be able to borrow.

What counts towards my income?

When mortgage lenders look at your application, they won’t just look at your salary. They’ll take other sources of income into account. This includes income such as state benefits and child support payments from an ex-partner. All these additional income streams could help increase the amount you borrow.

Lenders want to know you can afford your mortgage repayments without struggling. To do this, they’ll look at:

• Your regular monthly outgoings

• Your typical disposable income after all bills have been paid

• Your overall debt commitments and credit limits

• How much you’ve managed to save

In the months leading up to your application, it’s important to make sure all your financial commitments are paid on time and you try and save as much as you can towards a deposit to add strength to your case.

Can I get a mortgage as a self-employed single parent?

Being a self-employed single parent, your income isn’t as straightforward as it would be if you were on a salary. If you’ve got a solid self-employed income that’s steady and easy to prove, you should be absolutely fine with the majority of lenders. 

Most lenders will ask for three years of accounts, but there are some who will only require one year. If you haven’t submitted your income to HMRC yet, then you’ll have to wait until you’ve done this before submitting a mortgage application.

Read more in our Self Employed Mortgage Guide.

Can I get a mortgage if I’m a single parent and have bad credit?

Yes, it’s possible to get a mortgage as a single parent, even if you have bad credit.

You’ll need to explain what caused your bad credit issue, how long ago it happened, and how much money was involved. It’s also important to show what you’ve been doing since to improve your score. For example, a few missed mobile phone payments will be less worrying to lenders than a bankruptcy.

When it comes to bad credit, it’s best to face the issue head on. The first step is to get an accurate, up-to-date and detailed look at your credit history and credit score. We recommend using Checkmyfile** – it’s the UK’s most detailed and trusted credit report service. They’ve been helping people understand the credit system for over 20 years, and are the UK’s top ranked credit report service on Trustpilot. 

**When you click through to our affiliate links, we may earn a small commission at no extra cost to you. We only recommend sites we trust and believe in.

What happens to my joint mortgage if I’m a newly single parent?

Separations and divorces can be stressful, even more so if you need to sort out a joint mortgage. You have a few options for your mortgage when separating from an ex-partner:

Sell the home

That means you would no longer have any financial ties to each other. But it means both of you will need to find somewhere else to live.

If both of you want to leave the house, but don’t want to give up ownership, then you could explore the option of renting it out. If you do this, either one or both of you can still own the home. If both of you want to still own the home, you’ll have to split the rent two ways, and you’ll still be on a joint mortgage with financial ties to each other. If just one of you wants to rent the property out, they’ll have to buy out the other from the mortgage. 

Buy out your ex

One of the most common choices is to have one partner buy the other out and transfer the joint mortgage to one person.

The benefit of this option is that you get to keep your home, which could be a good idea if you’d struggle to get a mortgage on your own. Your mortgage payments wouldn’t be affected and you’d still have a joint mortgage.

If you both decide you want the mortgage to be transferred to one person, you can either stick with your current lender, or consider looking around for a new lender. 

The process of transferring a mortgage to one person usually involves an interview and consultation with a solicitor, and you might have to have your property revalued. There’s likely to be admin and legal fees, and possibly stamp duty if you’re making a substantial payment to the other joint owner.

Read more in our Guide: How Can You Buy a Partner Out After Separation?

Don’t forget you’re both liable for the mortgage

Even if you’ve separated, you’ll both still need to make your mortgage payments until you reach an official agreement. If either of you misses a payment then it’ll bring down both of your credit scores. Separating from a partner can be a difficult process, but it’s important to keep on top of things while you’re still financially linked. 

Can I get a mortgage on benefits?

Yes, there are some mortgage lenders who are happy to consider you if you’re on state benefits. You’ll probably need to find a specialist lender if your benefits are your main source of income. 

Does child benefit count towards my income?

There are some lenders who’ll count child benefits towards your income on your application, but usually they’ll need your children to be under 13 years of age. This is because if your child benefit makes up a big part of your income, lenders might think you’ll struggle to pay the mortgage once you stop receiving the benefit. Some lenders will also include childcare vouchers when working out how much you can afford to borrow. 

You can read more in our Guide: Can I Get a Mortgage With Low Income?

Can I get help with my mortgage repayments?

If you already have a mortgage but need help with your repayments, you can get help from the government if you receive certain benefits. These include:

• Income Support

• Jobseeker’s Allowance 

• Employment and Support Allowance

• Universal Credit

• Pension Credit

The help you can get is called Support for Mortgage Interest. It’s a loan, so you’ll have to repay it if you sell your home.

Our Mortgage Experts know which lenders will consider applications from people on benefits or Universal Credit. Getting rejected for a mortgage can really hurt your credit score, so you don't want to risk being refused simply because you applied to the wrong lender.

Make an enquiry and a member of our team will contact you to discuss what benefits can be included and which mortgage lenders could be prepared to look at your application.

Mortgage options for single parents

While there aren’t any schemes dedicated specifically to single parents, there are a number of ways you could get on the property ladder. 

• Shared Ownership. The Shared Ownership scheme allows you to buy part of a property and rent the rest. You take out a mortgage on the part you're buying, then pay a reduced rent on the part you don't own. You can buy some or all of the remaining property share later on.

• Right to Buy. If you’re currently a council tenant in England, you could qualify for the Right to Buy scheme If you meet the criteria, you'll be able to buy your home at a discount. Most mortgage lenders will then accept your discount as a deposit. 

• Guarantor mortgage. If you’re struggling to meet the affordability needed to be accepted, you could apply for a guarantor mortgage. A guarantor mortgage is where someone else agrees to pay for your mortgage in the event that you can’t.

• Buy with family or friends. Combining deposits and sharing all the monthly living expenses with family or friends can be appealing. It’s a big commitment though. You’ll be jointly responsible for the mortgage payments. If one of you can't pay, you'll have to cover the cost. You also can't sell the property unless everyone agrees.