Can you get a single mortgage on your own, and what support is available?
Whether you’re sick of renting and ready to buy a property of your own, moving out of your parent’s home for the first time, or just keen to get on the housing ladder, you might have wondered about single person mortgages.
The good news is you can get a mortgage on your own. The bad news is that the current economy, and the financial strains facing single people can make the process a little tougher.
Unlike with a joint mortgage, you won’t have the benefit of an extra income to help you manage housing costs, save for a deposit, or apply for a larger mortgage loan.
However, that doesn’t mean you don’t have options.
You might even find you can save money in the long term, by switching high rental costs with lower mortgage rates. Based on my own experiences getting mortgages as a single person, here’s everything you need to know about buying a house on your own.
Can I Get a Mortgage on My Own?
Yes, you can get a mortgage on your own, whether you’re a first-time buyer, or a homeowner separating from your partner. You can even choose to take out a mortgage on your own if you’re married, or in a relationship, but don’t want to add the other person’s name to your mortgage.
Ultimately, most lenders aren’t worried about your relationship status. They’re focused on whether you can afford to pay your deposit, and handle your mortgage repayments.
So the real question is, can you afford a mortgage on your own?
Before you start looking for single person mortgages, here’s our starter guide to what you’ll need to think about:
Your Single Person Mortgage Deposit
The first thing you’ll need to pay for when getting a single-person mortgage is your deposit. This basically means you purchase a portion of your home outright, and borrow the rest of the money you need. Although there are 5% and 10% deposit options available, the average deposit in the UK right now is around 15%.
Additionally, if you’re a first-time buyer, there’s a chance you might pay an even higher deposit. According to Zoopla, the average among first-timers is around 24%.
Typically, the more of a deposit you can pay, the better your mortgage deal will be. Plus, you’ll have less to pay back on a monthly basis.
However, saving for a deposit, particularly with just one income, isn’t easy. That’s why there are so many government mortgage schemes out there designed to help you pay less.
For instance, you can pay a 5% deposit with:
The Amount You Can Borrow on Your Mortgage
Next, you’ll need to figure out how much you can reasonably borrow for your mortgage. Notably, this number isn’t just based on how much you can pay your lender back each month in your mortgage payments. Lenders will run affordability checks to determine how much they can safely lend you.
All mortgage lenders have their own specific lending criteria to follow, which usually looks at things like your credit rating, your income, your assets, and your deposit.
If you already have debts and other expenses to deal with, then this could reduce how much you can borrow too. If you’re trying to figure out how much you might be offered, before you speak to a broker or lender, there are tools like the governments Money Helper Affordability Checker that can help.
Other Potential Fees and Costs
Getting a mortgage on your own isn’t just expensive because of the deposit or monthly repayments you’ll need to make. There are other costs to consider too. You might need to pay for:
- A broker to help you find the right mortgage.
- Solicitors to process your mortgage and produce documents for you.
- Surveyors to check the value of the house you want to buy.
- Stamp duty and similar fees.
- Moving and redecorating costs.
Typically, you can expect to pay several thousands of pounds on everything from arrangement and valuation fees, so make sure you factor this in when building your budget.
Who Can Get Single Person Mortgages?
How does a lender decide what to lend. Are there any special deals out there? Technically, anyone can get a single person mortgage, but there are certain factors that might make it harder for some people to get approved than others.
For instance, if you’re self-employed, it can be harder to prove to a mortgage lender that you’re earning the right level of income each year to pay your mortgage. You’ll need at least three years of accounts to show with more lenders, which can be an issue if you’ve just gone self-employed.
Another factor that could harm your ability to get a single person mortgage is bad credit.
Again, it is possible to get a mortgage with a poor credit score, but you’re less likely to access the best deals. The worse your credit is, the more likely your lender will see you as a risk.
Severe credit problems such as bankruptcies and CCJs could cause some lenders to turn you down. However, some smaller credit issues might not have too much of an impact on your mortgage. Your best option here is to speak to a professional mortgage advisor for guidance.
Notably, as we mentioned above you don’t have to be technically single to get a single person mortgage either. You can still choose to apply for a mortgage on your own if you don’t want to share it with your partner. For instance, you might do this if you haven’t been in a relationship for very long, or if your partner has a poor credit record.
Can You Remortgage on Your Own?
Yes! Just as you can get a mortgage on your own, you can remortgage as a single person too. As long as you check all the boxes when it comes to your lender’s eligibility criteria, you should be fine. You can even choose to simply remove one person from a mortgage if you’re divorcing or separating.
Although, this usually means getting a product transfer, rather than a remortgage, and buying your partner out of any equity they have in the home.
You’ll also need to pay more legal fees, as there will be a lot more solicitor work involved with the transfer of equity.
How to Get a Single Person Mortgage
Getting a mortgage on your own might seem scary (I know, I’ve been there), but it’s easier than you’d think. There are also plenty of great mortgage brokers out there who can help you, and some will analyse your situation first for free.
Typically, these are the three steps you’ll need to take:
1. SAVE & BUDGET
For a single person, a mortgage can seem like an impossible thing to acquire. However, with a little planning and caution it’s definitely possible to get a mortgage on your own. I’d recommend starting by figuring out how much you can afford to save each month towards a deposit.
The higher your deposit, the more attractive you’ll be to lenders, so you should have more deals to choose from. Next, look at how much you’re likely to be able to borrow, based on your annual income, this will give you an insight into what kind of house you can afford to buy, and even how much you’re likely to spend on monthly repayments.
Remember, if you’re struggling to save for a mortgage on your own, you can always consider an alternative route, like buying a house with a friend.
2. GATHER YOUR PAPERWORK
Once you’ve budgeted enough money to pay for your mortgage fees and deposit, the next step is collecting the right documents. The first thing you should check is your credit score. This is what lenders will look like to determine if you’re a good “risk” for a mortgage.
If your credit score is problematic, you can potentially improve it by removing any mistakes, and paying off more than the minimum on your debts (when possible).
On top of getting your credit score, you’ll also need to collect information about your incoming and outgoing expenses (debts and wages), to share with your lender. Your mortgage broker should be able to advise you on which documents you need.
3. ASSESS YOUR MORTGAGE OPTIONS
With all your paperwork ready, you can assess your mortgage options. While you can go browsing through deals yourself, I’d recommend using a broker for this part. They’ll be able to guide you through the different types of mortgage available to you, such as fixed-rate and tracker mortgages.
They may also be able to give you advice on the kind of schemes you can take advantage of to save money, and even give you access to deals you can’t get on the high street.
Plus, a broker can offer lots of advice on everything from finding a solicitor for your mortgage needs, to choosing a surveyor, so they’re handy to have on your side.
Can Anything Make Getting Single Person Mortgages Simpler?
Getting a mortgage on your own can be challenging, particularly if you don’t have the best income, or your savings are limited. However there are some schemes and support options out there. Again, your mortgage broker will be able to advise you on your options, but some solutions include:
- Shared ownership: This allows you to purchase a share in a property with a mortgage, and pay rent on the rest. You can increase your share over time, and potentially reduce your housing costs while you’re building equity.
- Guarantor mortgages: Guarantor mortgages involve someone agreeing to pay off your mortgage repayments if you can’t. They can offer their own savings or property as security, reducing the risk of lenders giving you the money you need.
- First time buyer support: If you’re a first-time buyer, you could be eligible for schemes like the government mortgage guarantee. You could also consider taking advantage of programs like the lifetime individual savings account, to make your savings go a little further.
Navigating Single Person Mortgages
The good news for anyone looking to buy a home on their own is that is possible, it’s not just always as easy as you might like. Ultimately, it’s tougher to get a mortgage as a single person, as your income and savings are likely to be limited.
However, with the help of a broker, and a little careful budgeting, you could be on your way to a home of your own faster than you think.
If you’re looking for extra advice, check out the articles and guides on this blog for tips and tricks on how to save money as a single person.
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