If you’re a foster carer looking for professional help in securing a mortgage deal, then you’ve come to the right place. In this guide the experts at The Mortgage Heroes discuss everything you need to know as well as answer the most frequently asked questions.
Why Can’t I Get a Mortgage as a Foster Carer?
Finding a mortgage through the majority of high street lenders can be extremely difficult for a foster carer due to the way your income is paid. This is because certain lenders don’t view your foster allowances as a proof of income and therefore class you as self-employed.
Most high street lenders and building societies will examine your net income shown on a tax return as proof of affordability. This, however, can cause problems for foster carers as they aren’t usually taxed on their total income. The figure will thus look far less than what you actually receive as part of your overall fostering allowance and income, which means that, on paper, the mortgage is unaffordable.
This can be incredibly frustrating if your foster allowance is your sole source of income. It can be even more frustrating if you know you can afford monthly repayments.
In order to find the most suitable foster care mortgage you’ll have to look further than just the high street lenders. You should search the market for lenders who will calculate your mortgage affordability based on your total income. It’s worth noting that some lenders are likely to require a higher than average deposit, whereas others may require the same minimum deposit as someone who is employed or self-employed. You’ll also have to structure your application a little differently to that of a standard application.
For the best chance of getting your mortgage approved it is strongly recommended that you utilise the professional help of an expert mortgage broker. With access to the market they can save you time and money by bringing you directly to providers who are a match for your specific situation.
Here at The Mortgage Heroes we specialise in helping foster carers find and secure a mortgage, so get in touch today if you’re looking for reliable help. Our team of mortgage brokers have vast experience in this particular sector and fully understand its intricate complexities. In the past we have supported foster carers with short and long term placements, special guardianship, respite care and adoption – whatever your situation, we’re here to help.
We have access to the mortgage market and great relationships with some of the leading lenders in the UK which will accept 100% of your foster income.
The minimum deposit for a foster carer is currently 5% (this is the standard figure for those who are self-employed). Remember, though, that the larger the deposit, the lower your interest rate is likely to be.
The application criteria will vary from lender to lender. Common examples of what a lender may ask you to provide include fostering remittance slips covering the last 6 – 12 months and a letter from the foster agency or local authority confirming your total income for each year.
If you’re a foster parent looking for the most suitable mortgage, please don’t hesitate to contact The Mortgage Heroes today. We’re expert advisers with years of experience in successfully helping foster carers secure a mortgage. From start to finish, we’ll make the entire mortgage application process simple, smooth and hassle-free.
We can help you find a mortgage. Contact a mortgage hero today.