Foster Carers Mortgages

Are there specific mortgages for foster carers?

Although there aren’t mortgages specifically intended for foster carers, there are certainly Mortgage Lenders who will be more sympathetic to your needs.

As high street lenders are largely set up to deal with those with more traditional employment types, it can be difficult to find a competitive rate with them. However, there are independent lenders who will look at your fostering income differently, which can be very beneficial to your application.

How do I find the best mortgage for foster carers?

Speaking to a Mortgage Broker like us for some tailored mortgage advice can be key to securing a mortgage that suits your individual needs.

We can ensure that you find a Mortgage Lender that will offer you a competitive interest rate. And also use a preferential method to review your income. It’s possible to access lenders who will use your remittance slips in support of your application, rather than your tax returns. This means that they will look at your full income without deducting your foster care allowances.

How do I qualify for a foster carer mortgage?

Alongside the standard affordability criteria and creditworthiness, some lenders will have additional requirements associated with your chosen career. These wouldn’t necessarily apply to other roles. 

For example:

• You will usually need to have at least six months experience in the field 
• You may need to provide evidence from your fostering agency that you will continue to provide this service for the foreseeable future
• Some lenders will require a higher than usual minimum deposit

It’s usually possible to avoid restrictive criteria if you approach the right type of lender. We can certainly help to find one right for you.

What can I do if I’m a foster carer who’s struggling to get a mortgage?

There are a number of Home Ownership Schemes available in the UK that may be beneficial to foster carers:

Help to Buy (currently closed)

The Help to Buy scheme allowed First Time Buyers in England to utilise a government equity loan of up to 20% (40% in London) of the purchase price of a new build home, when you provided a 5% deposit. The loan was Interest-free for five years.

The 2021-2023 Help to Buy Equity Loan Scheme closed to new applications at 6pm on 31st October 2022. All eligible homebuyers had to legally complete by 31 March 2023.

Shared Ownership

This scheme was updated in 2021, so it’s now possible to purchase as little as 10% of a property and up to 75%, when you take out the mortgage. You pay rent on the remaining share to a housing association.

As you only need a mortgage to cover the chosen percentage. This can be a very affordable way onto the property ladder for lower income families. It’s also possible to increase ownership as and when you can afford to do so. This can be in increments as little as 1% at a time.