Foster Carers Mortgages

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for you and your family.

Foster Carers Mortgages
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 ourselves 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 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, which 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, and we can 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

The Help to Buy scheme allows 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 provide a 5% deposit. The loan is Interest-free for five years.

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, in increments as little as 1% at a time.

Right to Buy

If you’re already a local authority tenant in England, you may be able to purchase your rented home at a significantly reduced price, although availability varies by region.

You will need to have lived in local authority housing for a total of three years (not necessarily concurrently) prior to application. Your discount also increases when you’ve lived at the property for longer than three years.

Mortgage Guarantee Scheme

Unlike other schemes, this is aimed at protecting lenders rather than applicants. It was introduced to increase the availability of 95% mortgages, which should now be available to all creditworthy applicants in the UK. The property does not need to be a new build in this instance.

First Home Scheme

Aimed at First Time Buyers and key workers, this scheme allows you to purchase a new build home in your local authority area at a discount of at least 30% and up to 50%.

As a foster carer, how much can I borrow?

Loans are not based on your employment type, rather your overall affordability and credit score. Therefore you will usually be offered between three and four and a half times your annual income.

Speak To An Expert

We provide professional, friendly and accessible advice and support throughout the mortgage application process, and are able to offer recommendations and referrals to trusted conveyancing and estate agent colleagues too.

What documents will I need to prove I can afford a mortgage? 

The evidence you provide will depend on the method of calculation the Mortgage Lender you approach uses. High street lenders are more likely to use your tax calculations and HMRC tax overviews. Those lenders willing to consider your full income amount are more likely to request remittance slips.

How can a Mortgage Broker help me?

Our friendly team of mortgage advisers, here at Mortgage Broker Services, specialise in helping those with more complex mortgage applications, such as foster carers. We have in-depth current knowledge of the criterias for lenders relevant to your income style. We can therefore ensure that you get the best deal for you and your family.

Get in touch with us today and we’ll help you find the right mortgage for you.