Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Flip

1 2

Original poster

AIBU to feel it’s impossible to get a mortgage on my own?

37 replies

Supermum29 · 20/08/2018 19:15

Single parent, just me and DD. Currently living back home to save. My earnings aren’t brilliant but not terrible either. I feel like it’s going to be impossible to get a mortgage on my own.

I’m struggling being back home I’ll admit, my mum and I butt heads often and I’m sharing a room with my DD. I feel suffocated to say the least. I’m desperate to move out but want to save for at least a year to get some money behind me and clear some debts left from when I was with DD’s dad (joint debt but that’s a whoooole other post!). I’d prefer to buy than rent again as I feel rent is a bit of a waste when I will never own the property, I’d rather the little money I have go towards something with a reward at the end of it all instead of struggling to line someone else’s pockets. I’d also like the sacrifices we’ve made to move back home to be worth it, I’ve changed jobs, DDs school and moved an hour away, put what little belongings and household things we had in a family members garage!

I’m also concerned that any savings I have for a deposit I obviously need to declare (I get tax credits) and therefore will reduce my payments meaning I have less income, less to save and will likely then have to use my savings to help with childcare etc!

So AIBU to think it will be very difficult to get a mortgage as a single parent? Anyone here have any reassuring stories?

OP posts:

Fang2468 · 20/08/2018 19:19

Pay off your debts, keep monthly spending to an absolute minimum, keep your current account in good order (no unpaid dd’s etc). From my recent experience they want to know all your regular expenses as well as ‘bills’ so travel to work & leisure, shopping costs, clothes & haircuts etc. They also validate this against your bank statements- it was strict.

Eliza9917 · 20/08/2018 19:24

Seeing as buying will benefit your daughter, couldn't you put the savings in her name?

huggybear · 20/08/2018 19:29

Whereabouts are you trying to buy and what's your income? I don't think anyone can advise you without knowing that. Or use a percentage if you don't want to give specifics.

Original poster

Supermum29 · 20/08/2018 19:49

Any savings in my daughters name affect tax credits just the same. Unless in a trust fund that I cannot access.

I live in the south east, my annual income is £23k before deductions etc.

OP posts:

Eliza9917 · 21/08/2018 11:29

Could you look further out or is that not an option?

Gromance02 · 21/08/2018 12:29

I think millions of people are in your shoes right now. Have you looked into house prices in your area and the deposit required?

Oysterbabe · 21/08/2018 12:31

I think with debts, an income of 23k and living in the south east then buying anytime soon seems unlikely.

lastqueenofscotland · 21/08/2018 12:34

Could you look elsewhere/ less desirable areas? Realistically you’re going to be able to borrow 100/120ish tops.

EmUntitled · 21/08/2018 12:37

Have you looked into government schemes like Help to Buy or Shared Ownership. A friend of mine was on a similar income and was able to buy a flat where she owns half and rents half from HA. Her actual mortgage is something like 75,000 on a flat worth 150,000. We live in Hampshire where house prices are relatively high.

AwkwardPaws27 · 21/08/2018 12:39

How about shared ownership? If you bought say, 25% of a property, it would massively reduce the deposit needed and give you the long-term security you desire, and if you sell your share in future you would have the money to put towards a bigger place.
You still pay rent on the rest, and there would be a service charge (as with any leasehold flat), but it is a start. Some areas have rent-to-buy schemes, where you can rent a flat at a lower-than-market value rent for a year or two to help you save for a deposit too.

OftenHangry · 21/08/2018 12:39

I got mortgage just in my name, but it meant higher interest for a while as I had to go with provider who doesn't mind risky, but obviously makes money on it. Though I am in NW and budget was bloody tight. Bless the FTb thing with only 5% deposit...
Don't really trust that online calculators for affordability. They showed me 30k less than I could actually borrow. Certainly invest into a broker. Independent one and look for a starter property since it is just two of you. 2 bed will do more than well.
But clear your debt first! All these things count when it comes to bank counting how much you can afford to pay. Is your credit score good?

GreenTulips · 21/08/2018 12:40

Have you looked at the help to buy ISA?

Can you stash your savings at home so aren't traceable?

OftenHangry · 21/08/2018 12:42

(not a single parent though. Just thought this info can be handy anyway)

Lazypuppy · 21/08/2018 12:53

I got a mortgage for a 1 bed flat when I was earning £16k and i only put down £5k deposit.

It is doable. Start small and then you can move up the property ladder in the futute

missbehaving1000 · 21/08/2018 13:25

Can you put your name on the local housing waiting list? I know it may take longer than trying to save but for me, I lived in a rented flat which I then bought under the right to buy scheme. Recently sold that and am now in a fortunate position of buying a house as a single parent for me & DD.
It will take a long time, and I guess it depends on how long you are able to tolerate being back at home but long term it might be worth something to consider.

KnobJockey · 21/08/2018 14:06

To get around the savings, could you pay your mum rent every month, then she coincidentally gifts you exactly the same as you have saved when you need your deposit?

Eliza9917 · 21/08/2018 16:30

@Lazypuppy Tue 21-Aug-18 12:53:09
I got a mortgage for a 1 bed flat when I was earning £16k and i only put down £5k deposit.

It is doable. Start small and then you can move up the property ladder in the futute

How long ago was that? What was the price of the flat? How much mortgage did you take out? Where in the country?

Lazypuppy · 21/08/2018 16:48

@Eliza9917

How long ago was that? 3 years ago What was the price of the flat? £95k
How much mortgage did you take out? £90k
Where in the country? big city in south west

toomanychilder · 21/08/2018 16:50

Well of course you can't get a mortgage as a single applicant with an income of 23k and a dependent!
Would anyone imagine you could?

Eliza9917 · 21/08/2018 16:50

Maybe the OP could look to relocate down that way on those figures.

OftenHangry · 21/08/2018 18:24

@toomanychilder of course she can 🙄
She might just have to have certain non negotiable insurance for income etc

toomanychilder · 21/08/2018 18:43

Of course she can? I think her entire point is that she cannot!

Sarahandduck18 · 21/08/2018 18:45

Tax credits don’t take account of savings!

OftenHangry · 21/08/2018 21:41

@toomanychilder people do get mortgage with that wage and in that situation.
But she won't get a big one. There is no argument about that. And that's why people here suggested small property and to look farther out of the city.

toomanychilder · 21/08/2018 21:51

People get a mortgage on 23 k gross, with a dependent, with no deposit, no savings and debt, and very little ability to save for a deposit?

Really? In the UK? I very much doubt it.

Flip

1 2

Swipe left for the next trending thread