Mortgages for Foster Carers
At Elementary Mortgage Solutions, we have years of experience successfully arranging mortgages for foster carers.
We offer a free, no-obligation mortgage consultation where we discuss your situation and answer any questions you may have.
Book your FREE mortgage consultation, call 0115 7845780 or simply enter your details below
Expert Mortgage Advice for Foster Carers
Elementary Mortgage Solutions are experts in recommending and arranging mortgages for foster carers.
We work from a panel of lenders, which means, we are not tied to any one provider and can compare thousands of products to find the best one that meets your circumstances.
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Why is it Difficult to Get a Mortgage as a Foster Carer
Getting a mortgage as a foster carer is often far from straightforward. The standard criteria lenders use to assess a borrower’s suitability for a mortgage isn’t typically compatible with how foster carers are paid. This is because many lenders don’t view the foster allowance as proof of income and consequently class foster carers as self-employed.
When applying for a mortgage as self-employed, lenders will typically require the last two years of tax calculations as proof of affordability. As a foster carer’s allowance generally isn’t taxed, the tax calculation will show an income of £0, making the mortgage appear, on paper, to be unaffordable.
Seeking Expert Help
As a foster carer, navigating the mortgage market can be time consuming and frustrating. However, with an experienced mortgage broker that understands the complexities of a foster carer’s income by your side, you can still find competitive mortgage products that suit your situation.
At Elementary Mortgage Solutions, we have years of experience successfully arranging mortgages for foster carers. Our brokers have an in-depth knowledge of the mortgage market. They can approach lenders that will allow you to use up to 100% of your fostering income whilst also treating you as a regularly employed person rather than self-employed.
Foster Carer Mortgage Criteria
When assessing suitability for a mortgage, lenders will look at the standard criteria, including the size of the deposit, credit history and property types, as well as specific criteria relevant to foster carers;
- Most lenders will only lend to foster carers with a minimum of 6 months’ experience. Typically, the longer you’ve been a foster carer, the more mortgage options you will have available to you.
- You may be asked to provide evidence, either from a fostering agency or local authority, that your foster caring will continue for the foreseeable future.
- When assessing your affordability for a mortgage, lenders will want to know how many dependent children are in the household. This will include your own children and those being fostered.
- You will also be asked to provide details of any additional income, for example, salary from a second job.
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Foster Care Mortgages FAQ’s
What Deposits are Required?
Lenders will require a minimum 5% deposit. If your circumstances allow it, providing a larger deposit will increase the number of mortgage products open to you, with the interest rates will typically be lower.
Are Interest Rates Higher for Foster Carers?
Interest rates are the same for foster carers as they are for anybody else. However, the number of mortgage products accessible to you may be more limited, and therefore, the very lowest rates may not be available.
How Long Do I Need to Have Been Fostering For?
The longer you have been fostering, the more options you will have available to you. However, providing you have been fostering for at least six months and can provide six months remittance slips and six months corresponding bank statements, there may be a lender that will lend to you and take into account all of your income.
Can I Remortgage my Home?
Absolutely, foster carers can remortgage their properties, whether to secure a better mortgage rate, raise capital or consolidate debts.
Are Their Specific Lenders for Foster Carers?
No, however, there are lenders, both national and regional, that understand the specifics of foster carer pay and therefore represent the best options when applying for mortgages for foster carers.
Is There Any Support for Foster Carers?
Although there is no specific support for foster carers to buy a property, universal schemes may be available depending on your eligibility.
For more details of these initiatives and to see what other support may be available, visit the Own Your Home website.
Find Out More
If you’d like to know more about applying for a mortgage as a foster carer or would like more details of how an Elementary Mortgage Broker can support you in the process, please get in touch. We offer a free, no-obligation mortgage consultation where we discuss your situation and answer any questions you may have.