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How can you borrow enough to buy a home if you’re single? Mortgage tips for solo buyers

As most people know, the amount you can borrow towards buying a home is based on your income and outgoings.


The more you earn, the more you can usually borrow, and when you’re buying with a partner that means you’ve got two incomes going towards affordability.


But, what happens if you want to buy on your own? Does that means your budget is a lot lower than someone in a couple? And if so, how can you ever get on the property ladder?


There are a few different ways! From schemes to boost your income and borrow more to options for putting down to the deposit you need, it’s not all doom and gloom if you’re a solo homebuyer.


Whether you’re living with family and friends and want to get on the property ladder, or you’re separating from a partner and want to know options for going it alone, Beewise are here to help.


Click here to arrange a call with your local Beewise mortgage advisor, or ring 01934 204841 for tailored advice to your current situation.


Or, scroll down for more information on some of the choices that could be available to you.

Boost your mortgage borrowing

One of the most popular ways to increase the amount you can borrow is through a Joint Borrower Sole Proprietor mortgage.


Essentially, this means you’ll have two people on the mortgage (joint borrowers), but you’ll be the only one living in the property and named on the deeds (sole proprietor).


So you could add your mum and dad onto the mortgage application, a brother, sister, or other relative, and even a friend with some lenders.


Their income and outgoings will be factored into the mortgage affordability calculations, just as if you were buying the house together, but they don’t actually move in with you – it’s a win-win!


In fact, some lenders will let you add up to 4 people on one application, meaning the amount you can borrow is much higher – as long as you’re comfortable with those monthly mortgage payments.


Because they’re named on the mortgage, they’d have joint liability so would need to get independent legal advice. But, your local Beewise mortgage broker will guide you through the whole process.


And in a few years time, or when your fixed deal is up, you could be in a position to remortgage on your own and take them off.


To see how much you could borrow, and find out more about Joint Borrower Sole Proprietor mortgages, call us on 01934 204841 or click here to email us.


Buy with a friend

Being single doesn’t mean you have to buy a house on your own. If you’ve got a friend who also wants to get on the property ladder, have you considered buying with them?


It’s a great way to potentially build equity in a property as opposed to paying rent, and doesn’t have to be forever – you could agree to own a property together for a period of time and reevaluate the situation then.


For example, if you took out a five-year fixed deal, at the end one of you could remortgage and borrow additional money to buy the other out, or you could sell and buy your own places separately.


Or you might find living with a friend suits both your lifestyles and carry on!


As with Joint Borrower Sole Proprietor mortgages, some lenders will let you have up to four people on one mortgage application, giving you scope to buy a much bigger house.


And, if the deposit was coming from just one person, or people were putting in different amounts, you can easily get a legal document drafted to protect that.


You could choose to get back the same amount you invested, or draw up a document protecting the equity, e.g. a 10% share of the property value.


It’s a great alternative to buying solo, so give Beewise a call today on 01934 204841 to find out more.


Get help with a bigger deposit

There are two ways to improve your affordability when buying somewhere: increasing the amount you can borrow or increasing your deposit.


While the options above increase your borrowing power, you could stick with your current affordability, so you know the monthly mortgage payments are comfortable, and put down a bigger deposit instead.


The Bank of Mum and Dad are often a go-to for this, or generous grandparents that are happy to help you get on that property ladder.


And while most lenders prefer a gifted deposit to come from a family member, there are others who are happy to accept it from wider family, friends, or even a landlord in the form of a discounted sale price.


That can be the case if you’ve been renting for a while and your landlord decides to sell, giving you first refusal at a lower-than-market-value price.


The same also applies if you’re buying from a family member – maybe someone has an investment property they’re happy to sell to you for cheaper than its current value.


In these cases, the difference between the true market value and the price you’re buying it at could be classed as a deposit, helping you bag a home at an affordable cost.


There’s also a third option where a family member can give you money towards a deposit without actually gifting it to you.


For instance, they may have money in a savings account that isn’t being used, so they’re happy for it to go towards your deposit, but they’d want it back when you sold the house.


This is called a protected deposit, and a charge is simply applied to the property – a legal interest for the amount they put down – to ensure their investment is safeguarded.


A great option for all parties, having a protected deposit means you can get on the property ladder without someone permanently parting with their hard-earned cash!


Not all banks and building societies offer this option for a mortgage, but your local Beewise advisor will find you the most suitable deal.


Put down a smaller deposit

With more lenders looking to help first time buyers get on the property ladder, there are lots of mortgage options now for those with a lower deposit.


When you’re buying on your own it can be hard to save up a big deposit, but 5% deposit deals are quite widespread across banks and building societies now.


And there are even options to put down just £5,000 towards a deposit, or take out a 100% mortgage!


This is a great option if you have a good salary and are able to get to the borrowing you need, but can’t see a way to saving that deposit.


On a £200,000 property, a 5% deposit would still be £10,000. So, the option of borrowing 100% of the property price and paying no deposit may be the perfect way to buy your first home.


These schemes aren’t available to everyone – you’ll need to meet certain criteria, and generally have a good credit rating.

So, contact your local Beewise mortgage advisor and we’ll let you know if you’re eligible.


We’ll chat through your current situation, calculate how much you could borrow, and let you know what mortgage deals and schemes are available to you.


Plus, Beewise advise on other costs involved in buying a home, such as monthly payments, solicitors fees and surveys. And we’re on hand until you get your keys to guide your through your homebuying journey!


Buying your first place can be intimidating, so we’re here to make it as simple as possible, as well as save you time and money.


Part buy with a shared ownership scheme

Shared ownership is a great way to get on the property ladder, as you only buy a share of a property and rent the rest from a housing association.


This means the amount you borrow towards a mortgage is a lot less, as is the deposit. In fact, some lenders offer mortgages where you can borrow 100% of the share amount with no deposit.


The share you buy can differ depending on the property itself and your affordability, but one example is buying a 30% share of a £250,000 house.


The share value would be £75,000, and you could potentially choose to put down zero deposit, 5% (£3,750), or more. The rest would be taken out as a mortgage, then you’d also pay monthly rent.


With shared ownership, you often have the option to buy further shares in the property – known as staircasing – which means you could eventually own all of your home.


Or, you could sell it further down the line if you were able to buy outright, and hopefully have equity in the property to put towards a new place.


The amount you can borrow towards a shared ownership home varies from property to property, but we’ll calculate that for you, and advise on how to go about starting the process.


We’ll also offer help and support through the application, find you the most suitable mortgage deal, and liaise with estate agents and solicitors on your behalf throughout for a stress-free experience.


Contact your local Beewise advisor!

Now you know how invaluable we are when it comes to home buying, give us a call and we’ll get you started on your journey.


Whether you’re ready to start looking now, or want an idea of what to work towards, we’ll take you through your options step by step with award-winning advice and 5 star service!


To get in touch with your local Beewise FS Ltd advisor, click here or call 01934 204841. And, click here to check out our 280+ 5 star customer testimonials.


With evening and weekend appointments available, we’re here to make mortgages and protection easy to understand.



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