Is there any way I could get a mortgage

[Saviourofthedeadstarfish]

Planning for the future as recently single. Have 2 kids under 2 and from what I gather I can't return to work until youngest is a bit older as can't afford the bills and childcare. Realistically am I likely to ever be able to get a mortgage? I've got about £10,000 in savings and my income was around £20,000 pa when I was working full time. Is there anything I could be doing in readiness for a house purchase or does my low income mean I'll never he able to buy?

I think you need to give a lot more information. How do you currently pay bills etc? Regular child maintenance payments? Do you live in a cheap or expensive area? Without knowing much at all I'd guess If you're in a cheap area once your kids are at school you'd be able to get a mortgage.

Was a SAHM but recently bereaved so no maintenance claim and because I have young kids I'm on income support. I assumed I wouldn't even be considered for a mortgage until employed again so I'm hoping once employed it is possible. Was worried that as I I'm likely to have a low income and 2 dependants that nobody will give me a mortgage! I'm in the Midlands so prices relatively low.

You would have to show you have an income that covers both your day to day expenses as well as your potential mortgage. I doubt you would get a mortgage if your not working.

If you speak with your bank with potential income figures they will look at what value mortgage they would raise for you. They will also ask what your expected childcare costs do have an idea of those. When we looked at mortgages I think the amount they would lend was about 4x your income. (This was NatWest about 2 years ago and 1 dependent)

The best thing you can do is make sure your credit history is good, so no credit card debt, no CCJ's etc.

The bigger the deposit the better, but you may find you will have to pay solicitors/searches etc and this could be an extra 2k+ (depending on area etc) on top.

Thats what I thought. I would struggle to get anything nice for 4 x the income I'm likely to get I think. I've never been in debt/in overdraft and I've never had a credit card, am I better off getting a credit card (and using it to get a credit rating?) Suppose I could keep saving in the vain hope somebody might give me a mortgage and if they don't then at least I'll have more money in the bank.

You are so brave.

Did your partner have any life insurance?

It's 4.5x income level but they deduct all your regular outgoings like cc, loans, car finance, etc. On 20K salary round here you could get a flat but nothing 2 bed plus.

Thank you No, he was terrible with money so we had separate finances! Thankfully I I saved whilst working but sadly I think owning my own home will just be a dream for me.

You're not going to find a lender whilst your income is solely benefits, but that's not to say you can't look forward to the future when you're able to return to work.

Keep IS informed of any increase or decrease in your savings.

I think the problem for me is going to be that I am going to be the sole earner with a relatively low income and 2 dependants. The property it looks like I could afford wouldn't be suitable for my family. Suppose I could look at training to increase the likelihood of a better paid job, think that'll be my best shot. Very worried about my financial security and raising children alone so I need to be earning as much as I can anyway.

Great idea to do some training. You sound like a hard worker so I'm sure you'll get there.

Wish I'd let DH be SAHD like he suggested, could have furthered my career a little more. Hindsight is a wonderful thing, never mind!

Were you married? If so you'll be entitled to widowed parents allowance but from what I understand this doesn't last longer than 18 months under the new scheme. I managed to get a mortgage recently in a similar position (bereaved, two young children, high child care costs). I used a good broker and found they also took income from tax credits, widowed parents allowance and child benefit into consideration. I did have a hefty deposit though thanks to a death in service payout (DH life insurance wouldn't pay out!). It would also depend a lot on your loan to value on the property - I moved from the South to the North for cheaper property prices but I understand that might not be possible for everyone. There are lots of things to consider. My advice overall is to chat with a good broker :) Good luck though, bless you, it's hard, but it sounds like you are being practical and positive looking ahead to the future. I hope it all works out.

Thank you and sorry for your loss onewingedangel It has given me a little bit of hope that it is achievable then. Didn't want to sacrifice lots if I couldn't achieve the goal anyway. I have had the widows allowance, I was entitled to a set amount spread over x amount of months and a lump sum. Unfortunately funeral was costly even though it was very basic. I didn't want yo meet with a broker as I wasn't even sure it was possible and I wanted to get some more savings so I have an emergency fund as well and a deposit. It has given me some motivation to save as much as I can now so I can hope my achieve it.

So sorry for your loss too and that you are facing everything as I did a couple of years ago - it's a very hard place to be. You have determination though and your children will be a good motivation too. It is definitely achievable - but make sure you take care of yourself in the process. Don't let yourself burn out. If/when you are ready to go back to work there are a lot of things you can look into to help with childcare. Childcare tax credits were a lifesaver for me and allowed me to go back to work, luckily mine are in school now but back then without the tax credits I would have never managed to afford the childcare! These were taken into consideration with my mortgage offer too. But for now - take care of yourselves :)

Sorry for your loss OP was your DH/DP working when he died? Just wondering if you are entitled to any sort of death in service payout? Most large companies offer this benefit and in lots of cases is worth several times the deceased person’s annual salary (eg my DH would get 4x my salary)

You absolutely could!!! You have a nice little deposit and child tax and working tax credit does count as income. Find yourself a mortgage adviser and they will work it all out. I absolutely think you could. Although also depends on house prices where you stay

@supercalifragilistic2 I got a mortgage when I wasn't working 🤨

@supercalifragilistic2 she could search for her own home and most mortgage advisors simply add their fee onto the mortgage there for she wouldn't notice. It's definitely do able op and I worked in conveyancing for 20 years

Sorry for the overload of messages. Even just working 16 hours would up your lending potential and you would be able to claim up to 70% of childcare costs x

What sort of field do you work in? Is there a way to increase earnings?

Sorry, toddler his my phone! It was a senior admin position so I looked after a couple of junior admin and did finance etc. Could possible to progress but figured being out of work for a while it may take me a while to get to that point. Interesting tgat it's possible to get a mortgage before employment. I'm definitely going to keep saving, possibly by that point the littlest could be in nursery and I could get some part time work. Hopefully then I could find something in my price bracket. Thanks for all of the advice, its really helpful.

Some lenders take benefits into account like nationwide. When your working part time this maybe an option, or shared ownership as you have a deposit. You would also get help on the rent you have to pay with shared ownership with housing benefit.

Look for shared ownership properties. This will give you a foothold on the property ladder.