Dunn Talking
Welcome to Senior Mortgage and Protection Adviser Kevin Dunn’s personal finance column, Dunn Talking. Kevin’s from Furnley House, an Independent Financial Planner and Mortgage Broker.
Getting a mortgage as a single person
Buying a home as a single person can feel like a daunting process, so we’ve put together a list of four things that can help.
1. Clear debt and save hard for a deposit
Any debt you hold will reduce the amount a mortgage lender will lend to you, so it is important to concentrate on clearing any outstanding loans and credit cards.
In terms of a deposit, you will need at least a 5% of the value of the home you want to buy. Saving into a Lifetime ISA if you are eligible is worth considering.
2. Check your credit rating
Review your credit report beforehand to give you an insight into what you look like as a potential borrower to a lenders underwriting team. Make sure it doesn’t contain any mistakes. If you see anything amiss, contact the credit reporting company so they can investigate it.
3. Be realistic about your buying goals
Start to budget now, understand how much you spend and plan for how your bills may change. Many people assume that when they buy a property they will be better off because they will stop having to save for a deposit, but ownership comes with maintenance costs. There’s also initial move costs, such as decorating or replacing appliances.
4. Think about protecting your income
As single home buyers rely on one source of income to pay the lender, it’s a good idea to have some financial protection. You might consider looking into coverage to help with paying your bills should you experience an illness or accident.
Find out more
If you’d like to find out more about buying a home our advisers can help. Call 0116 269 6311 or email yourmortgage@furnleyhouse.co.uk Your home may be repossessed if you do not keep up repayments on your mortgage.