Mortgages for Foster Carers
When looking at mortgages for Foster Carers, these can be as complex as any other. As a foster carer your income and tax are paid in a unique way therefore it can prove difficult to prove this to the lender along with your income ensuring you can borrow meaning it could prove difficult for you to get a mortgage.
Here at Alexander Southwell Mortgages our brokers praise the work you do as a foster carer and we aim to provide the best service in finding the right mortgage deal for you based on the structure of your income and the tax advantages. Though we cannot provide accounting advice we can guide you through the mortgage maze to help you establish if you will be eligible for a mortgage or not.
FEE FREE Mortgages for Foster Carers
We offer FEE FREE mortgage advice and support to key workers via phone, WhatsApp, FaceTime and Skype. Simply WhatsApp us OR email us any time of day and we will arrange a call to speak to one of our advisors that fits within your busy schedule including Saturday and Sunday early and late. We will try and not put any barriers in the way of you getting a mortgage.
Getting a Foster Carer Mortgage
Mortgages for foster carers can prove to be tricky and this is because the fostering income received can be difficult to calculate, especially when the mortgage lenders each have their own calculation for the way your income is made up.
Fostering income is assessed on a individual basis therefore when sourcing the best mortgage is it important to consider each of the mortgage lenders criteria based on your income to be able to get a mortgage.
If you are a foster carer and have been doing this for at least 6 months and you are looking to purchase a property or remortgage an existing, then look no further because we can help you to secure a mortgage.
To prepare for a mortgage application it is important to gather as much information from you as possible which will enable us to research the marketplace.
For example, some lenders will consider your income like a self-employed income therefore they may well require a least 2 years of tax calculations show the fostering income.
Some lenders will use your remittance slips along with a letter from your agency confirming your income and role as a foster carer.
It is also important to consider the lenders affordability assessment. For example some lenders can reduce what you can borrow overall as they will count your foster children as ‘dependents’ when assessing affordably.
Being a whole of market broker we can search not only the high street lenders but the wider market and more specialist lenders to find you the best mortgages for foster carers.
What Is The Criteria For A Foster Carer Mortgage?
Ever mortgage, even those mortgages for foster carers has a set criteria i.e. deposit size, credit history, income, outgoings, property types etc most lender will applying some additional criteria when assessing for a mortgage as a foster carer.
- How long have you been a foster carer – they will need to know how long you have been fostering for as usually a minimum of 6 months is required.
- Evidence from your agency – sometimes they will require evidence that your foster caring will continue as your home may be repossessed if you can’t maintain the payments due to such income stopping. This is usually done by a letter from your agency or local authority.
- Affordability – any children that are your own or fostered by you and are living in the property will be considered as dependents when assessing your mortgage affordability.
- Documenting your income – as outlined some lenders will treat you as self-employed therefore, they will calculate your income after the deduction of your carer’s allowance leaving you with your net profit figure and others will want to see your remittance slips from your agency or local authority.
We will gather as much information as possible before approaching any high street lenders or specialist lenders so get in touch to discuss your options today.
Frequently Asked Questions – Mortgages for Foster Carers
Will my Interest Rate Be Higher As A Foster Carer Mortgage?
With any mortgage, the best rates available are to those who have a larger deposit and good credit history. This is no different because you are a foster carer.
The biggest difference with foster carer mortgages, is that because your income is so unique there are fewer lenders willing to lend when assessing their income.
This just means there are few high street lenders for mortgages being offered to foster carers which in effect can have fewer options in terms of rates.
What Deposit is Needed For A Foster Carer Mortgage?
As a foster carer you will need the same deposit as any other borrower – 5%. The larger the deposit you have, the cheaper the mortgage deals and this will give you more access to further products and lenders.
Can I Use the Help To Buy Scheme If I Am A First Time Buyer And A Foster Carer?
Yes – with the right lenders foster carers can be consider the same way as employed or self-employed income therefore this is assessed for a mortgage meaning 100% of your income can be considered.
The help to buy scheme is for any first-time buyer and is not an income specific scheme therefore all you have to have is as little as a 5% deposit and the income to support the new mortgage.
Remortgages for Foster Carers
Remortgaging is still an option for foster carers, so whether you are looking to obtain a more competitive rate or because you want to raise capital. This still will be very much dependent on the lenders who will accept 100% of your fostering income.
Can I purchase a buy-to-Let property as a foster carer?
You can still purchase a buy to let investment property and will be assessed the same way as any other buyer looking to do the same thing. You are likely to require at least a 25% deposit for a buy to let property.
What help can I get as a foster carer & why would I use a mortgage broker?
Finding the right mortgage deal isn’t always the easiest task, particularly when you’re working in a demanding job role and your income isn’t as straight forward. Fortunately, help is available.
Furthermore, being able to offer ‘whole of market’ mortgage advice, AS Mortgages can help you to determine which provider best suits your needs and personal circumstances, and as well as offering a tailored mortgage solution, our professional mortgage advisers can assist throughout the application process.
Alexander Southwell Mortgages appreciates the hard work and dedication offered by all foster carers therefore we are a FEE FREE Service, to help you find a mortgage and get on the property ladder.
Our mortgage broker services don’t stop there…
Alexander Southwell understands that the mortgage application and discussing your mortgage options is just one aspect of buying or remortgaging a property.
We can advise on Solicitors, help you understand survey reports you may have consider, provide you with background information on the property you are considering buying, and liaise with any estate agency or builder involved.