FOSTER CARER MORTGAGES

Although high street lenders usually calculate your eligibility based on your net profit after deducting all your foster carer allowances, leaving you with a low-income figure, it is still possible to obtain a mortgage based on fostering income. Certain lenders consider fostering income as a valid source of income for mortgage applications, especially if you have a consistent payment history from a registered fostering agency or local authority. The amount of fostering income considered for a mortgage application may vary based on factors such as the duration and number of children in the fostering arrangement, as well as the potential for the income to continue.

To maximise your chances of securing a suitable mortgage, it is advisable to work with a mortgage broker who specialises in fostering income. This will help you find a lender who understands your unique circumstances and can offer you the best options. Your broker can also evaluate your eligibility and affordability based on your income and expenses, as well as help you prepare all necessary documents, such as tax returns and fostering agreements, for the application process.

Although obtaining a foster carers mortgage with bad credit in the UK is possible, it can be more difficult to find a suitable deal. Mainstream lenders typically have strict criteria that disqualify borrowers with poor credit or a history of missed payments or defaults.

However, some specialist lenders and mortgage brokers offer bad credit mortgages, including mortgages for foster carers. These lenders typically have more flexible criteria and may consider your income, affordability, and credit history when assessing your application. They may also require larger deposits and offer higher interest rates than traditional mortgages.

To increase your chances of finding a suitable mortgage deal, it is advisable to work with a mortgage broker specialising in bad credit mortgages, such as us at ams: We can help you find lenders and mortgage deals that match your unique circumstances, prepare your application, and improve your chances of success. We have secured loans for foster carers in the past who have been bankrupt or been in an IVA within the last 6 years.

As we use your remittance slips and NOT your self-assessment tax returns to assess income, we can offer you a similar amount to an employed person. This is an advantage compared to High Street lenders, which tend to calculate your affordability based on your net profit after deducting your foster carer allowances, which typically result in a lower income figure for the loan assessment.

Lenders offer varying amounts, the best way to find out how much you can borrow would be to call talk it through with one of our brokers. The amount that you can borrow for a mortgage based on your UK fostering income will vary based on several factors, including your expenses, income, and the lender's requirements.

Yes, it is possible to get a mortgage if you have been fostering for less than a year in the UK, but it will be more challenging to find mainstream mortgage deals. Although most lenders prefer borrowers with a stable income and employment history, we know lenders who will approve mortgages for foster carers based on a minimum of six months of fostering through an agency or local authority. We can even help you find a lender to approve your application if you have poor credit. It is crucial to work with a mortgage broker, such as ams: who has experience with fostering income and can help you find suitable lenders and mortgage deals that match your unique circumstances.

When applying for a mortgage, you will typically need to provide evidence of your income, including your fostering income. The evidence you need to provide will differ from lender to lender.

Some lenders may request remittance forms provided by your fostering service, whereas others may request a letter from your agency summarising your total earnings for every year you have worked with them.

Other ways of proving income include bank statements, tax returns, and evidence of any additional income (e.g., from investments, other jobs, etc.,)

Here at ams: we have excellent experience and can advise on exactly what is necessary to qualify for your foster carer mortgage.

You may be able to secure a mortgage with a 5% deposit; however, the higher your deposit, the more likely you are to be approved. The deposit you will need for a UK foster care mortgage will depend on various factors such as the value of the property you are looking to buy, the lender's requirements, and your financial situation.

A strong credit score, a stable income, and a low debt-to-income ratio will also be useful in increasing your chances of success. Some lenders may take your fostering income into account when assessing your affordability, which could help you secure a mortgage with a lower deposit. However, it is important to note that not all lenders will consider fostering income in this way, so it is a good idea to speak to a mortgage advisor, such as ams: that specialises in fostering mortgages.

If we can’t help, it’s not possible.

While lenders offering mortgages based on 100% of your foster care earnings are more limited than other types of mortgages, that doesn’t necessarily mean that mortgage rates will be higher. We can help you find the most competitive rates with both high street and regional lenders for foster carer mortgages.

If we can’t help, it’s not possible.