Can you buy a property on a single income?

Mortgage providers calculate how much they will lend based on how much of the mortgage can be paid back each month. It doesn't matter if it's just you buying a house, it's about how much you can realistically afford to pay back each month along with how much you want to borrow. In a nationwide survey, we found that one in three* (32%) believe that they will be able to buy on their own and, in Scotland - 45% are willing to buy on their own. Alternatively, nearly one in 10 (9%) will be buying their first home with friends or family. But, what if you do want to buy alone? Read our steps below to help you get to grips with securing a mortgage via a broker. 

A good way to increase the choice of mortgages available to you on a sole income is to use a mortgage broker who can search a wide range of lenders to tailor a deal to meet your individual needs. Teacher Lois, 25, who works in Nottingham and is buying a new home in Sherwood, used a broker to find the right single income mortgage for her move.

She said: “I had a ten percent deposit and chose a two year deal because I don’t definitely know if I’ll still be in the same house in five years. It was a straightforward process. With it being a single applicant there was only one set of paperwork and payslips to process. My mortgage broker got me a deal that I felt confident in.”

Senior Mortgage Broking Manager at The Nottingham, Ben Osgood explained having just one income in the mix was only part of the calculation. He said: “It’s down to an affordability assessment on you, your income and outgoings. The lender does take into account reduced costs of living for someone on their own too. If you are paying a mortgage on your own, the key thing is to consider what you would do if you couldn't pay your mortgage. In short, a plan B. When there are two people working they may consider themselves safer if one of their incomes dries up. Do you have savings or would you be able to borrow from the Bank of Mum & Dad? Or, have you considered income protection?”

These are the steps you can expect on your path towards securing a mortgage via a broker:

1. A personal case handler will be assigned to see your application through to completion;
2. They will give the lender all the documents they need to progress the application;
3. The property will be valued;
4. You will get a formal offer of a mortgage, which your case handler will check through;
5. Your solicitor will carry out the necessary searches;
6. A completion date will be arranged to suit you;
7. The lender will send the money to your solicitor on the agreed date.
8. You have a handover period where you arrange key exchange.

You can use our mortgage calculator to quickly work out how much your monthly mortgage payments could be. If you’re interested in speaking to our expert mortgage advisers, you can call Nottingham Mortgage Services on 0344 481 0013 or visit your local branch. Better still, if you have over £500 in a Nottingham Building Society savings account, there's no fee to check what mortgages are available to you! This means you can see how much you could borrow with no obligation.

Whole of market mortgage advice is provided by Nottingham Mortgage Services Ltd (NMS); an appointed representative of Quilter Mortgage Planning Ltd, which is authorised and regulated by the Financial Conduct Authority; registered No. 440718. NMS is a wholly owned subsidiary of Nottingham Building Society and registered in England and Wales, No. 03089887; Nottingham House, 3 Fulforth Street, Nottingham NG1 3DL.

Remember, your home may be repossessed if you do not keep up repayments on your mortgage.

Please note all case studies are fictional and for illustrative purposes only.

*653 first-time buyers were interviewed online between October 19th and 25th 2018 by independent research company Consumer Intelligence.


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