Are you currently a foster carer or parent and looking for help in getting a mortgage deal? It might be that you have already applied to a high street lender and have been declined due to them not understanding or recognising your income.
Please don’t panic, there are mortgage lenders for foster carers which could accept your application.
If you would like to find out what your options are, please call our friendly team today so we can assign one of our specialist advisers to your case. It could be the first step to getting the mortgage deal you deserve.
Why do foster carers find it hard to get a mortgage?
The reason it can be hard to get a foster parent mortgage is due to the fact that your foster allowances aren’t always viewed as proof of income to certain lenders.
If your foster allowance is your sole source of income, this can be extremely frustrating, especially when you know you can afford monthly repayments.
Mortgage lenders will view you as being self-employed, meaning you will have to structure your application a little differently, and make sure it’s submitted to the lender most likely to approve you.
The majority of high street lenders and building societies will look at your net income shown on a tax return as proof of affordability. For self-employed people this can cause issues, as it might look like it’s far less than what you actually receive as part of your overall fostering allowance and income.
With most foster carers not being taxed on their total income, the net income that the lenders will examine for affordability will be lower than what the reality is.
But don’t worry.
Our advisers can offer mortgage help for foster parents, offering affordable solutions for those looking to get a mortgage on foster care income.
How we can help
Our advisers understand how busy life can be as a foster parent. Having time to explore the whole market of lenders, put paperwork together, get the best deal, and apply to the right company can be time consuming.
And if you get it wrong, you could get declined due on a mortgage due to your foster carer income and how the application has been structured.
Our advisers are here to help, and whilst it can be hard to get a mortgage as a foster parent, it’s not completely out of the question.
If you choose to work with our advisers, they will:
- Explain what additional paperwork and proof of income you will need to prepare.
- Possibly ask you to provide a letter from the fostering service.
- Help prove that you have regular and sustainable income to the lenders.
- Find a lender that will suit your requirements as a foster carer.
Our advisers will take as much of the complexity out of the equation as possible so you can get a foster parent mortgage to help secure a home for you and your foster children.
Foster Parent Mortgage FAQs
Can foster parents get cheaper mortgages?
Our advisers will source the best deal possible on the UK market from a range of lenders prepared to accept those on fostering income.
Are there mortgage lenders for foster parents?
There are no specific mortgage lenders for foster carers. However, there are lenders that our advisers have access to who lend to self-employed workers and those with non-traditional pay structures.
Can I afford a mortgage based on my foster carer income?
Whilst the majority of high street lenders will be looking at your net profit once you have deducted your allowances, meaning low income assessments, it doesn’t have to be that way.
The advisers at Specialist Mortgage Online will work to create an application where all your fostering income and additional income sources are considered.
Some lenders are prepared to offer as much as 100% on mortgages, with certain schemes in the UK that might even mean you don’t need to come up with a lower deposit.
How much can I borrow?
There is no hard and fast rule to how much foster carers can borrow on a mortgage, as each application is different.
We recommend contacting us now to speak with an adviser who will be able to give you better estimates on what could be possible depending on you and the lenders in the market.
How much deposit will I need to raise?
It might be that you only need a deposit as low as 5%. This is a very standard figure for those that work as self-employed but that could be different at the point you contact our advisers.
How long will I need to have been a foster carer for?
With traditional high street lenders it can be a 6 month minimum. However, our advisers have access to specialist lenders where the time limit could be as low as just 3 months.
What evidence of earnings and income will I need to provide?
The application criteria will differ from lender to lender. Our advisers will tell you what you need to provide on a case by case basis, and it could include written proof from the fostering service you work through.
Can I get a mortgage on the Help to Buy scheme?
There are certain lenders in the UK who offer the Help to Buy scheme to self-employed people, and it could mean you only need a 5% deposit.
Am I able to re-mortgage my current home?
Yes, you can, and our advisers could even help you get a cheaper foster carer mortgage deal that the current agreement you are on.
And what about a buy to let mortgage?
The majority of lenders will ask for a higher deposit if you are considering a buy to let mortgage. Read our guide to buy to let mortgages elsewhere on our website.
Can I get a mortgage with bad credit or defaults on my file?
Our advisers are specialists in bad credit mortgages, helping people every week despite having poor credit or defaults on their file. You can read more about how we help people with bad credit mortgages by clicking here.
What to do next
Each case our advisers deal with will be judged individually, with great care and attention taken to ensure that the best deal and rates are found for you.
Just because you have been turned down in the past when applying for a foster parent mortgage, it doesn’t mean that’s the end of the matter.
There are lenders in the market who are prepared to lend, it’s just about working with an adviser who understands your income, and finding those lenders prepared to accept your application.
To get started contact our friendly team today who will gather a little information from you and then advise you on the best steps to take.