Getting a Mortgage as a Single Mum

debtuptoeyeballs

How much do the houses cost that you would be interested in?
Some lenders do not require proof of income below a certain LTV so that might be possible if the house is quite cheap? If not, would Shared Ownership be an option? Or maybe a guarantor on the mortgage?
I am also a single parent and on paper could never get a decent mortgage on my own. I am lucky in that my mother was happy to be my guarantor.
Good luck and remember - there are no problems, only solutions

Dick_here

The words 'sub' and 'prime' spring to mind here.

Jaycee1972

"The words 'sub' and 'prime' spring to mind here."

Sorry have no clue what this means???

Jaycee1972

In response to some of the other points raised, no, 90K is not realistic in my area. Cheapest 2 bed probably around 120K. The ones I would be interested in, probably 130-140K.

Yes, the childcare element of the working tax credit pays quite a lot of the child care. Having said that, when he is old enough to get funded places or go to school, I won't have to pay nursery fees so although my tax credits will drop, I will be better off.

Nationwide does have boxes on the website for child maintenance and benefits (forgot to count child benefit so that would be a bit more). Seems odd then that they don't take them into account. I go and have a chat with them as I had my mortgage with them before and they were really good.

If I buy with mum, we have to wait until she sells her house (hence the delay previously between selling my house and buying again). We would have around 200K to put down and would be looking at property in the region of 240 - 280K. The idea being that we would like an annexe or a house where we can at least have 2 separate lounges, preferably kitchens and she needs a downstairs bathroom and bedroom. Not an easy one to achieve!

The house we were going to buy ticks all the boxes but mums house didn't sell and now me and hubby have separated. It was sold but is now back on the market at 290K. I reckon they will take 275K maybe less as time goes on. Hence my queries really. I was wondering if we could do it without hubby but I would need to be able to borrow around 80K taking fees and stamp duty into account.

I don't want to end up stuck paying rent with money in the bank for a deposit and yet paying as much in rent as I would on a mortgage!

Thanks for taking the time to reply. I will look into the halifax and other suggestions.

Jaycee x

Jaycee1972

Oh and with regards to a guarantor, I don't know if my mum would count as she is 75. I wouldn't like to put her in that position really either. They wanted a guarantor when I started renting my current home as I had no proof of tax credits at the time. In the end I gave proof of money in the bank and an increased deposit and they were ok about it. I refused to ask my mum and they backed down when I said I would have to leave it then! I even offered to pay 6 months rent up front but they prefered the deposit which seemed a bit odd but anyway!

Jaycee x

Mandark

He means that in the past some mortgage lenders would have probably given you your 80k but it would have been a bad decision, because as others have said, you would struggle to afford it and if your benefits or ex's payments were reduced, you'd be in big, big trouble. And that's a sub prime mortgage!

Jaycee1972

Thanks Mandark.

Fair point but then I have to pay my rent now and get no housing benefit as I have capital in the bank. I do intend to keep say a 5K safety net in my ISA (this is exra to the 50K deposit but I accept that if DH stops paying it is really the difffence between existing and living IYKWIM. I reckon I can survive on my income and tax credits/child benefit but it leaves little for clothes, outings and other extras or emergencies.

I am scouring these boards for money saving tips - I doubt lenders with count Quidco as income either but every little helps

space_rider

I have a mortgage with Abbey and they took tax credits into consideration. It worked out at 5 times my income of tax credits, child benefit and my salary. The only stipulation was that I didn`t have any other debts which I didn`t. I also had a deposit of about 40%. My friend who is in the same position as me also got a mortgage with Abbey and hers started 1st May. She did have to settle her debts first and she had a deposit of 35%.

debtuptoeyeballs

Standard Life list Child Benefit and Family Working Tax Credit as 'unacceptable income'. This always seemed strange to me seeing as CB is guaranteed, and the tax credits only reduce when you earn more. Anyway, that is a very large deposit so I would think a lender would be happy with such a low ltv. Hopefully your mum's place will sell soon, as it all hinges on that. Good luck.

Dick_here

debtuptoeyeballs wrote: »

Standard Life list Child Benefit and Family Working Tax Credit as 'unacceptable income'. This always seemed strange to me seeing as CB is guaranteed...

Not for 25 years it most certainly isn't :rolleyes: