Mortgages for Single Parents: Your Complete Guide

Being a single parent is tough. 

You juggle work, raise children, and manage daily responsibilities, often without a break.

The financial pressure is intense, with a single income stretched to cover everything from childcare to bills. 

And when it comes to buying a home in the UK, the challenges only multiply.

Strict affordability checks and the complexities of the mortgage market can make the process feel overwhelming.

But here’s the good news—you can secure a mortgage as a single parent.

This guide will help you understand the mortgage process for single parents, offering practical advice to make it smoother.

What is a Mortgage for a Single Parent?

A mortgage for single parents is no different from a standard mortgage. 

The difference lies in how your financial situation is assessed. 

As a single parent, you might face unique challenges, such as relying on one income or having multiple dependents. 

Lenders will consider these factors when deciding how much you can borrow and whether you can afford the repayments.

Image showing lenders care more about the ability to pay the mortgage – WE HAVE THIS

Mortgage Assessments: What Single Parents Need to Know

When you apply for a mortgage as a single parent, lenders focus on your ability to repay with one income. 

The process is similar to others, but there are a few key differences you should know.

Income Considerations

As a single parent, you often face stricter affordability checks because you rely on just one income. 

Unlike joint applicants with two salaries, you need to prove that your income alone can cover the mortgage payments and the costs of raising your children. 

This makes the assessment tougher, as lenders want to be sure you can manage the mortgage without stretching yourself too thin.

Additional Income Sources

Beyond your salary, lenders will consider other sources of income, such as:

• Child benefit
• Tax credits
• Maintenance payments from an ex-partner
• Universal Credit

But, not all lenders treat these sources equally. 

Some may only count child benefits if your children are under a certain age, while others might limit the percentage of your income that can come from benefits.

Choosing the right lender can make a big difference in how much you can borrow.

Affordability and Debt-to-Income Ratio (DTI)

Your debt-to-income (DTI) ratio plays a key role in affordability assessments. It compares your monthly debt payments to your gross monthly income. 

Most lenders set a DTI limit of 36% to 46%. If your DTI is higher, getting approved can be tough.

As a single parent, this ratio can be especially challenging with extra costs like childcare and school fees. 

To see where you stand, use our debt-to-income calculator. This will show if you’re on track or need to make changes.

Credit History and Risk

Lenders will closely examine your credit history, just like they would for any other borrower. 

But, they may be more cautious if your credit has been affected by life changes like divorce or separation. 

If you’ve had credit problems, it could affect your chances of getting a mortgage. 

But don’t worry, some lenders understand and might be more flexible if you can explain what happened and show you’re getting your finances in order.

Specialist Lenders

Life as a single parent can be tough, so you might want to try specialist lenders. They often have more relaxed rules about your income and what you can afford. 

A good mortgage broker can help you find the right one and make your application stronger.

To get started, reach out to us and we’ll connect you with a qualified mortgage broker for free.

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How Much Can a Single Parent Borrow?

How much you can borrow depends on your income, credit score, how many kids you have, and how much you can save for a deposit.

Lenders often let you borrow 3 to 5 times your yearly income, but this might be less if you have kids.

The usual Loan-to-Value (LTV) ratio ranges from 75% to 90%, depending on your situation. This means you must aim to save at least 10% to 25% of the purchase price for a deposit. 

The more you save, the better your chances of getting a good deal.

And as we discussed earlier, your debt-to-income ratio (DTI) –  how much you owe compared to what you earn – matters. Less debt means you can usually borrow more.

What Benefits Can Count Towards My Income?

Lenders don’t just look at your salary when assessing your mortgage application. They’ll also consider other forms of income, such as:

• Child Benefit: Many lenders will include child benefits as part of your income, though some may have restrictions, such as requiring your children to be under 13 years old.
• Tax Credits: Tax credits can also be included, but again, some lenders might have specific criteria.
• Maintenance Payments: If you receive maintenance payments from an ex-partner, these can be added to your income.
• Universal Credit: While not all lenders will consider Universal Credit, some specialist lenders might, especially if you have a stable claim history.

How To Get Single Parent Mortgages?

As we’ve discussed, single-parent mortgages aren’t different from standard mortgages, so the steps are similar. 

For full details, check out our complete mortgage application guide. But here’s a quick overview:

1. Sort out your finances and check how much you can afford. Use an affordability calculator for a rough estimate.
2. Save for a deposit of at least 10% to 25%.
3. Get a copy of your credit report and fix any errors.
4. Gather your documents, including payslips, bank statements, and proof of income and outgoings.
5. Use a qualified mortgage broker to improve your chances of approval and speed up the process.
6. Get an Agreement in Principle (AIP) so sellers know you’re a serious buyer.
7. Find the right property within your budget and in an area that suits your needs.
8. Apply for a mortgage with the help of your broker.
9. Go through the lender’s property valuation to confirm the home’s market value and ensure it’s worth the loan amount.
10. Receive your mortgage offer and hire a solicitor to handle the legal work.
11. Review the mortgage offer with your broker and exchange contracts with the seller to make the sale legally binding.
12. Finalise the sale and get the keys to your home once the mortgage funds are transferred to the seller’s solicitor.

As a single parent, you’ll need to show that you can comfortably afford the mortgage repayments, even if you’re working part-time or receiving benefits.

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Can a Single Parent Working Part-Time Get a Mortgage?

Yes, a single parent working part-time can still get a mortgage.

How much you can borrow will depend on how much you earn.

If your part-time income is low, don’t worry – things like child benefits, tax credits, or maintenance payments can help.

Some lenders might be fussy about including benefits and maintenance payments, but there are specialist lenders who are more understanding. 

They might even count all of your child benefit and maintenance payments towards your income, which can make a big difference.

Can I Get a Mortgage with Bad Credit as a Single Parent?

Having bad credit doesn’t mean you can’t get a mortgage, but it’s harder. Lenders will look at what’s wrong with your credit and how long ago it happened.

A few missed phone bills might not be a big deal, but a recent bankruptcy could be.

Lenders also want to know why your credit is bad. 

If it’s because of a divorce or losing a house, some lenders might be more understanding. 

Be honest about your situation and show you’re trying to improve your credit.

A good mortgage broker can help you find lenders who might say yes. 

If your credit problems are recent or really bad, there are special lenders who deal with people like you. They look at your whole financial situation, not just your credit score.

What Mortgage Help is Available for Single Parents in the UK?

There aren’t special mortgages just for single parents, but there are ways to make buying a home easier.

• Shared Ownership: This scheme allows you to buy a portion of your home and pay rent on the remaining share. It’s a good option if you can’t afford to buy outright.
• Help to Buy: Though the Help to Buy equity loan scheme has ended for new applications, if you started the process before the deadline, you could still benefit. This scheme allowed buyers to purchase a new-build home with just a 5% deposit.
• Guarantor Mortgages: If you’re struggling to get approved on your own, a guarantor mortgage might be an option. This is where a family member agrees to cover your mortgage payments if you can’t.
• Family Gifted Deposits: Some parents or family members might be able to help with a deposit, which can make securing a mortgage easier.

Are There Single-Parent Housing Schemes?

While there aren’t housing schemes exclusively for single parents, the schemes mentioned above—Shared Ownership and Guarantor Mortgages—are among the most accessible options. 

Additionally, some local authorities offer schemes or grants to help low-income families, which can include single-parent households. 

It’s worth checking with your local council to see what’s available in your area.

Can I Buy a House as a Single Mother?

Buying a house as a single mother is possible with the right approach. 

You might need to consider more affordable properties or explore schemes like Shared Ownership, but owning a home is within reach. 

If you’re considering buying with a friend or family member, this can also be a way to increase your purchasing power. 

Just remember, everyone needs to agree on things like selling or getting remortgaging, so it’s important to be clear about that from the start.

Working with a mortgage broker can also increase your chances of finding a lender who understands your situation.

What Should I Do if I Need Help with Mortgage Payments?

If you’re struggling to keep up with your mortgage payments, there are options available to help you. 

The UK government offers a scheme called Support for Mortgage Interest (SMI), which provides a loan to help cover the interest on your mortgage. 

You’ll need to be receiving certain benefits, such as Income Support, Jobseeker’s Allowance, or Universal Credit, to qualify.

What if I’m a Newly Single Parent with a Joint Mortgage?

If you’re separating from a partner and need to deal with a joint mortgage, you have a few options:

• Sell the Property – This is the most straightforward option if neither of you wants to keep the house.
• Buy Out Your Ex-Partner – If you want to stay in the home, you can buy out your ex-partner’s share of the mortgage.
• Transfer the Mortgage to One Name – Some lenders let you transfer the mortgage into one name, but you’ll need to prove that you can afford the repayments on your own.

Key Takeaways

• Lenders assess single-parent mortgages more closely due to single income and dependents.
• You can count child benefits, tax credits, and maintenance payments as income, but some lenders limit how much they’ll consider.
• A debt-to-income ratio (DTI) of 36% to 46% is preferred; higher ratios may affect approval.
• Bad credit can be a hurdle, but some lenders are understanding if you show improvement.
• Saving a 10% to 25% deposit increases borrowing power, and schemes like Shared Ownership can help.

The Bottom Line

Getting a mortgage as a single parent might come with its own set of challenges, but with the right advice and support, it’s entirely achievable. 

Whether you’re working part-time, relying on benefits, or dealing with bad credit, there are options available to help you secure a home for you and your children. 

Remember, the key to success is preparation—get your finances in order, understand what lenders are looking for, and don’t hesitate to seek professional advice.

A whole-of-market mortgage broker can make a big difference. They have access to a wide range of lenders, including those who don’t advertise publicly. 

They can also help you strengthen your application.

Need help? Get in touch. We’ll connect you with a mortgage broker who specialises in helping single parents.