Mortgages for Foster Carers
Getting a mortgage as a foster carer can seem like a complicated process. Lenders are not always open to understand the perceived complexities of how a foster carer gets paid. Different lenders will also assess a foster carer’s income with more scrutiny than a ‘standard’ employed person’s application.
When trying to acquire a mortgage as a foster carer it is important to get the correct advice so that not only are you able to secure the right mortgage rate but also secure the correct level of mortgage for your needs.
Can I get a mortgage if I am a foster carer?
As long as a foster carer meets a lender’s standard lending criteria, then in principle they can qualify for a mortgage. However, it should be noted that some lenders may apply extra checks and therefore scrutinise a foster carer’s income and personal circumstance in more detail before agreeing to lend to them.
At Just Mortgage Brokers, our advisers will work closely with you to understand your individual circumstance with the aim of securing you the most appropriate mortgage. Get in touch today to find out more.
What are the criteria for a mortgage if I am a foster carer?
Along with the standard criteria of deposit size, credit history and property type, most mortgage lenders will also apply the following criteria when assessing a mortgage for a foster carer.
- They will want to know how long you’ve been a foster carer for. A minimum of 6 months as a foster carer is usually required.
- They may require evidence that your foster caring will continue for the foreseeable future, usually via a letter from your fostering agency or local authority.
- Any of your own children that live with you along with any children that are being fostered by you will be taken into account as your dependants when assessing your mortgage affordability.
- The vast majority of lenders will treat you as self-employed and therefore calculate your income after the deduction of your carer’s allowance. This will then leave you with a ‘net profit’ which is then used to calculate your affordable mortgage amount.
When assessing your mortgage affordability, the deduction of your carer’s allowance can leave your income significantly lower than it is in reality. This is one of the main issues most foster carers face when trying to apply for a mortgage.
The reduction in income will most definitely lead to a reduction in the mortgage loan being offered.
Our Mortgage Advisers have access to lenders that understand the complexities and sensitive nature of being a foster carer. With this in mind, they can help you find lenders that are willing to use all your foster carer’s allowance as assessable income and in turn increase your borrowing potential.
mortgage rates for foster carers
As with all mortgages, the best rates are available to those that have a larger deposit and good credit history. Foster carers are treated much the same when it comes to securing a lender’s best mortgage rates.
The main difference with foster carers, is that there are fewer lenders willing to lend to them using their full income received via their carer’s allowance. This leads to smaller mortgages being offered to foster carers which in effect can lead to fewer options. In order to get the most suitable rates, it is important to look at lenders on and off the high street. Some of which are specialists.
To find out the most suitable rates available based on your circumstances, talk to one of our expert advisers today.
mortgage lenders for foster carers
The best mortgage lenders for foster carers are those that are willing to use all the carer’s allowance as income when assessing a foster carer’s affordability. While there are a few high street lenders that are willing to do this, the majority of mortgage lenders that are right for foster carers are specialists that are off the high street.
Our Mortgage Advisers work closely with a number of specialist mortgage lenders that will look at mortgages for foster carers and include the use of the full carer’s allowance as income. Speak to one of them today to see how they can help.
Mortgage advice for foster carers
One of the most important things to lookout for when trying to find a mortgage for a foster carer is a lender that is willing to take 100% of the carer’s allowance as income. Getting the correct advice can be the difference between securing the correct mortgage loan amount and buying the property you desire or not buying a property at all.
It is also important to understand the whole mortgage process so you can make educated decisions when it comes to securing the most suitable mortgage rates and sourcing the most appropriate mortgage lender.
Our experienced Mortgage Advisers are on hand to help foster carers with their mortgage needs. Give them a call today to find out how they can help you find a mortgage for a foster carer.