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Foster Carer Mortgages
On this episode of the mortgage and protection podcast we’re talking all about mortgages for foster carers with Stephen Hargreaves from Mortgage Co.
Are there specific mortgages tailored to foster carers?
No, there isn’t a specific foster carer mortgage. Certain lenders won’t do mortgages for foster carers and others will, it’s all down to the criteria. Some of the larger high street Mortgage Lenders don’t do mortgages for foster carers, but surprisingly one of the biggest lenders that will is Lloyds banking group. There are an awful lot of lenders that will offer mortgages for foster carers, it’s just a case of approaching the right one.
How do I know if I qualify for a foster carer mortgage?
As a Mortgage Broker, I would look at how long you’ve been a foster carer, and your income. Your current financial commitments, experience and earnings are the most important things when it comes to getting a mortgage as a foster carer.
What can I do if I’m a foster carer who’s struggling to get a mortgage?
There are mortgage schemes available to help those struggling to obtain a standard Residential Mortgage, such as Help to Buy or Right to Buy. You could also consider shared ownership, but in any case, it’s important to talk to a professional adviser and they would suggest the best option for you.
As a foster carer how much can I borrow and what deposit do I need?
There are no differences to a traditional mortgage application, so you may still be eligible for a 95% mortgage (requiring a 5% deposit), much like First Time Buyers in any other occupation.
How much you could borrow would be dependent on how much you’re earning and how much your outgoings are. Lenders will then use a multiple of your income to establish affordability.
What documents will I need to prove that I can afford a mortgage?
It’s more like a Self-Employed application than an employed application, because with a foster carer you usually need to show twelve months of pay slips, and in some cases two years, rather than three months required for a regular employed role. It would be essential to have your year-end figure as well as reconciliation slips for the last twelve months.
If you are considering fostering, make sure you keep all the details of your income because some lenders ask for a fairly substantial financial history.
How do I find the most suitable mortgage as a foster carer?
As a Mortgage Broker we are aware of which mortgage lenders accept foster carers, and understand the information that foster parents would need to put in a mortgage application, which means we should be able to help you to approach the right lender armed with everything that lender will need.
We would also look at which lenders are offering the best rates and would consider lending to a foster carer. This means that as well as saving time and hassle of finding a willing lender, we may be able to save you money by pointing you towards the most appropriate deals.
As a former foster carer, have you got any advice for foster parents who are looking to get a mortgage?
It’s a good idea to keep every bit of paperwork, because lenders are going to need at least twelve months worth of pay slips. Keep it for as long as you possibly can because it’s amazing how it may affect affordability if a couple of slips are missing.
It would be a normal mortgage application, but using a Mortgage Broker can help you to target a lender that would accept foster carers.