How Do You Get a Mortgage as a Single Person?
June 15, 2023

The mortgage market might be unpredictable. But applying for a mortgage as a single person can be surprisingly straightforward. In this guide, we’ll look at how to get a single-person mortgage and the mortgage services you’ll typically need.


Do mortgages for single people exist?

Yes, they do. Single-application mortgages are available in the following circumstances:

  • First-time buyers.
  • Buy-to-let mortgages.
  • Remortgaging to remove someone from a mortgage.
  • Partner is not working, is a low-wage earner or has poor credit.
  • The applicant is separated or divorced.

It may take you longer to save for a deposit and in many cases, you’ll have a lower borrowing threshold than a joint mortgage.

However, the application can be far more straightforward, with only one income to assess. Many successful buy-to-let landlords also develop a property portfolio as sole mortgage holders.


How much can a single person borrow?

Mortgage lenders always look at affordability when assessing eligibility. Lenders will look at the following criteria:

  • Income
  • Credit score
  • Employment details
  • Spending habits
  • Outgoings, including outstanding debts

Borrowing limits are generally calculated as 4.5 times your annual salary. Still, different lenders may offer a larger loan depending on your job. High-net-worth individuals or those in high-paying professions will generally qualify for higher salary multiples.

If you’re self-employed, your lender will assess your eligibility based on the declared net profit. You’ll be expected to show up to three years of accounts. However, depending on your circumstances, some lenders will approve a mortgage after one full year’s trading.


How big a deposit does a single person need?

It’s worth shopping around the market for mortgage services to get the most suitable deal. Some lenders consider a single-person application more robust than a joint application, and you could qualify for a 95% mortgage.

Saving a larger deposit can unlock better mortgage deals and allow you to access more lenders. However, you can still get competitive deals with a 5% deposit. Another option would be to explore the possibility of a gifted deposit from a family member to boost your borrowing power and access better mortgage deals as mentioned.


Can I apply for Shared Ownership as a single person?

It’s definitely worth applying for shared ownership purchases in Worcester and across the country. These government-backed schemes make getting on the ladder much easier for a single person as it is part buy part rent and therefore requires a lower mortgage amount due to buying a percentage of the property, rather than 100% ownership

The only difference is your application will be assessed on your income and eligibility alone.


Can I still get a mortgage with poor credit?

Mortgage advisers can still help you secure a deal, even if your credit rating is less than optimal. They’ll assess the current severity of your credit issues in order to find the most suitable deal. For example, if you’ve run into problems in the past, they should only affect your mortgage application if they’re less than six years old.

There are specialist lenders which offer mortgages to customers with a poor credit history. Whole of market mortgage brokers will be most suitable placed to assess your current financial circumstances, assess your eligibility and find the most suitable mortgage deal.

Look for mortgage services with specialist expertise in dealing with your situation. A solo mortgage application is also an option if your partner has bad credit, which would affect a joint application.


Single-person mortgage services from Kind Wealth

Getting a single-person mortgage can be seamless with the right whole of market mortgage advice in Worcester, Birmingham and across the country. We’ll help you showcase your earnings to the right advantage and find the most suitable deals for your circumstances.

At Kind Wealth, we’re a well-established financial services organisation specialising in financial planning and mortgage services. For the most suitable single-person mortgage advice, contact the Kind Wealth team today.


Please note
Your home may be repossessed if you do not keep up repayments on your mortgage.

Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 12/07/2023.


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