Can I Get a Mortgage on My Own?

Are you asking: Can I get a mortgage on my own? Don’t worry – you’re not alone. Many single buyers ask this question as they begin planning their journey to owning their first home. And whilst joint applications are most popular, securing a mortgage as a single applicant is certainly achievable.

One of the biggest challenges as a single applicant applying for a mortgage is proving affordability and subsequently meeting a lender criteria with only one income to rely on. Many single buyers worry about having a small deposit, lower borrowing potential, or a less-than-perfect credit history.

So, how do you get a mortgage as a single person?

In this article, we explore exactly how to get a mortgage as a single person, including what lenders look for, deposit requirements, credit score expectations, and how working with a trusted mortgage broker can help you. Let’s jump in.

What Do Lenders Look at When a Single Person Applies for a Mortgage?

Mortgage lenders will primarily look to assess your income, credit history, and affordability in order to determine whether or not you can manage making the agreed repayments independently.

Understanding exactly what lenders look for is crucial to a successful mortgage application. Whether you’re employed, self-employed, or have irregular income patterns, taking the time to arrange documentation as evidence of your financial security is essential to any mortgage application.

It’s important to note that each lender will have their own specific lending criteria and approach to assessing single applicants. For example, generally speaking high-street banks will usually have stricter affordability rules and rely heavily on proof of income and a stable financial standing. As such, they often prefer applicants with a strong credit history and consistent employment.

On the other hand, specialist lenders can be more flexible in their assessments. For example, they may consider applicants with more complex income sources, such as freelancers, contractors, or those with part-time work. These lenders can often take a more understanding approach to cases, assessing the overall financial picture, rather than just a one-size fits all criteria.

This distinction between different lenders and their criteria can be crucial for single applicants and it can help focus your application efforts more effectively. For example, if you know your income patterns are irregular, or you’re newly self-employed without a long history of business accounts, a specialist lender may offer more flexible options to help you secure a mortgage successfully.

What A Mortgage Lender Will Assess

While each lender’s criteria will depend on their unique approach, there are several key areas that most lenders will assess when you apply for a mortgage as a single buyer.

Here we have provided a checklist of what lenders will typically look to assess:

• Income

One of the most important aspects of any mortgage application is to provide evidence of a salary or self-employed earnings (payslips, tax returns, business accounts). This is to help assure lenders that you will be able to afford the agreed upon repayments consistently.

• Credit History

Lenders will review your credit report for a mortgage in order to establish an understanding of your financial position and management. They will look to assess any late payments, defaults, and existing debts.

• Affordability

Lenders will assess your overall affordability by comparing your monthly income against your outgoings, including regular bills, credit commitments, and living costs. This helps lenders determine whether you’re living within your means and ensures that the additional mortgage repayments will remain affordable.

• Deposit Size

The deposit size can play a big part in your mortgage application. A larger deposit can help reduce the lender’s risk, in turn helping you access more competitive interest rates. Notably, having a higher deposit will typically provide you with a wider choice of mortgage products and stronger approval prospects.

• Employment Stability

Going hand-in-hand with affordability and proof of income, lenders will usually favour applicants with a consistent employment record, as it demonstrates a reliable income source. Having at least six to twelve months in your current role, or a stable self-employment history of over 2 years, can greatly strengthen your mortgage application.

• Debt-to-Income Ratio

Your existing financial commitments, such as credit cards, loans, car finance, etc., will all be accounted for and compared against your income. A lower debt-to-income ratio will indicate a better affordability and can help reassure lenders that the monthly repayments will be maintained.

If you’re unsure on what your chosen lender will be looking to assess, then working with a trusted whole-of-market mortgage broker can make the process far easier.

At Boon Brokers, our expert mortgage advisers will guide you through your entire application – from start to finish. We’re here to help you understand each lender’s criteria and find the most suitable mortgage deal that matches your needs. With whole-of-market access to both high-street banks and specialist lenders, our experts will ensure your application is completed to the highest standard for the best possible approval outcome – completely fee-free.

How Much Deposit Does a Single Buyer Need for a Mortgage?

Lenders will usually require at least a 5% deposit of your total loan amount to approve your mortgage application. However, increasing your deposit amount (up to 40%) can help you access better mortgage rates and mortgage products.

If you’re buying a home on your own, one of the most common and important questions you’ll be asking is: how much deposit do I need for a mortgage?

In practice, lenders will calculate deposits as a percentage of the property’s value rather than a fixed amount. As such, if a lender requires a 10% deposit, the exact sum you need will rise as the property price increases. This means that for higher-priced homes, you’ll need a larger deposit to meet the same percentage requirement.

Let’s break this down into a practical example:

• If you’re looking to buy a property worth £200,000 and your chosen lender requires a 5% deposit, you will need to save £10,000 upfront.
• By increasing your deposit to 10% (£20,000) you could secure a lower interest rate and access additional lender options.
• Increasing your deposit beyond this amount can unlock even more competitive mortgage deals, potentially saving you money over the term of your mortgage.

As such, while a 5% deposit is the minimum that most lenders accept, taking the time to plan and save a little extra can make a significant difference in long-term affordability and interest savings.

At Boon Brokers, our whole-of-market mortgage advisers can help you understand and assess how your deposit size will influence your borrowing power. With a wealth of experience in helping clients nationwide, we can help guide you to the lenders that offer the best deals, tailored to your needs.

What Credit Score Do You Need to Get a Mortgage as a Single Person?

Credit score can play a key role for lenders in their assessment of your financial reliability, providing an insight into your financial profile, both now and historically. However, there is no exact ‘minimum’ credit score for a mortgage. Different credit reference agencies use varying scoring systems, and lenders will often rely on their preferred agency or internal criteria to assess your financial profile.

While it can be difficult to pinpoint what credit score you need for a mortgage, there are several key factors that will influence your score. As a general rule of thumb, a higher score will indicate to the lender that you are a lower risk applicant, making it easier to secure a competitive mortgage deal.

In the UK, lenders typically refer to one of three main credit reference agencies to assess your financial history:

• Experian
• Equifax
• TransUnion

You can check your own credit score directly before submitting a mortgage application to ensure everything is in order, identify any issues, and see where improvements can be made to strengthen your application.

After completing a credit check, the agency will provide a summary showing which aspects of your financial behaviour have had the greatest impact on your score.

Main Factors That Affect Your Credit Score

Repayment history, outstanding debts, defaults, CCJs, and recent applications can all affect your credit score rating. Understanding the factors that influence your credit score can help you take control of your credit rating, address any issues, and improve on any weak areas before applying for a mortgage.

Below we have created a list of the main factors that can affect your credit score:

• Payment History

Credit reference agencies will assess whether you’ve consistently paid bills, loans, and credit cards on time. Late or missed payments are recorded and can negatively affect your overall credit score.

• Existing Debt Levels

Your credit report will include your total outstanding credit, including loans, credit cards, and overdrafts. Lenders will use this to better understand your financial profile, how much you owe, and whether you are overextended financially.

• Length of Credit History

Your credit report will record your history of managing debt and credit. A longer history of managing credit responsibly will show lenders that you are experienced in handling borrowing expenses. Comparatively, a short history may make it harder to establish reliability, and can impact your credit score.

• Credit Enquiries

All credit applications are recorded by agencies. Multiple recent applications may temporarily lower your score, as they can suggest a period of financial stress and signal to lenders that you are a higher-risk borrower.

• Types of Credit Used

Agencies evaluate the mix of credit you hold, such as credit cards, loans, or mortgages. A balanced range can demonstrate your ability to manage various financial commitments.

• Defaults and CCJs:

Any accounts of County Court Judgements, bankruptcies, or defaults will be included in your credit file. These have a significant negative impact on your score and remain visible for several years.

• Registered Address and Identification Details

While it may appear simple, agencies will verify your identity using registered addresses and personal information. As such, being on the electoral roll and keeping details current helps maintain an accurate and reliable credit score.

Are There Government Schemes to Help Single or First-Time Buyers?

Yes, there are several government led schemes that can help first-time buyers with their first step onto the property ladder. These programmes are specifically designed to help applicants with smaller deposits to help improve their overall affordability and to access better mortgage terms.  Ultimately, these schemes can make homeownership more achievable.

Understanding exactly what schemes are available and how they could work for you can make a significant difference to your mortgage journey.

Shared Ownership

The Shared Ownership scheme lets buyers purchase a share of a property (usually 25% – 75%) and pay rent on the remaining portion. This initiative helps reduce the affordability needed upfront to secure a mortgage, helping single buyers with limited savings or income. Over time, owners can then purchase additional shares through a process referred to as “staircasing”, gradually increasing their total equity in the property.

Lifetime ISA (LISA)

The Lifetime ISA is a government-backed savings account that is specifically used by first-time buyers. Using this scheme, you can place up to £4,000 per year, with the government adding a 25% bonus to contributions, resulting in a maximum of £1,000 per year. These savings can then be used toward your first home deposit, providing single buyers a valuable boost to reach their target deposit faster.

First Homes Scheme

The First Homes Scheme offers first-time buyers the opportunity to purchase newly built homes at a discounted price. This will typically be between 30% – 50% less than the market value. This scheme was created to help first-time buyers with smaller deposits or tighter budgets enter the property market. It is important to note that discounted homes will remain capped for future buyers, ensuring long-term affordability for future generations of first-time buyers.

At Boon Brokers, our expert mortgage advisers are well-versed in these schemes and can help you explore all your options, weighing the pros and cons of each. As a fee-free mortgage broker, we’ll match you with lenders that best suit your needs, maximising your chances of securing the right mortgage deal.

Can a Mortgage Broker Help Single Buyers?

It’s no secret that buying a home on your own can feel like an impossible task at times. Between raising finances, comparing lenders, understanding interest rates, and uncovering different lender’s criteria, it’s easy to get lost as to where to start.

This is where a trusted mortgage broker in your corner can make all the difference.

At Boon Brokers, we offer fee-free, whole-of-market mortgage advice that is tailored to your specific circumstances. Whether you’re a single buyer entering the property market for the first time, want to know more and take advantage of government schemes, or are interested in exploring all of your mortgage options – our expert advisers will work with you to find the mortgage deal that matches your needs.

From the first call to handling the paperwork and lender communications, our experts will support your application, every step of the way. We make the process of mortgages simple, easy, and put you in the driver’s seat on your journey to homeownership.

Contact Boon Brokers and get expert advice to help you secure the mortgage that fits your plans and goals as a single buyer today.