Most people want to get on the property ladder at some point or another. That includes foster carers. Some might worry that securing a mortgage as a foster parent is a challenge, though. Some people might even wonder, can foster carers get a mortgage?
Can Foster Parents Get Mortgages?
Yes! There is no reason to assume you can’t get a mortgage as a foster parent. If you want to become a foster parent, don’t let that get in the way of your decision.
Can Foster Income be Used for a Mortgage?
Your fostering income can be used for a mortgage – there is no reason to think otherwise.
It’s important to note that most lenders will expect you to have been a foster carer for six months. So, if you are a new (or aspiring) foster carer, wait six months after you are approved. You will also need to show the lender proof of income and fostering at that point. You can get this through your local authority or fostering agency.
Does the Fostering Allowance Count as Income when Applying for a Mortgage?
Yes, your fostering allowance does count as income when applying for a mortgage. Some high street mortgage lenders might ask for a deduction when it comes to your foster care allowances – but not all. It’s usually a good idea to choose a lender who does mortgages for foster carers. There are a number of authorised and regulated lenders that foster carers can choose from – some high street, others more specialist lenders.
What Impact could Fostering Have on Applying for a Mortgage? E.g. Total value of mortgage
Several things impact your mortgage application, including your fostering allowance, proof of income, and loan to value. In short, your general financial circumstances impact what type of mortgage you get, interest rates, and the total value of the mortgage.
Do All Lenders Offer Mortgages to Foster Parents? Or Are There Lenders Who Specialise in this Area?
Most lenders offer mortgages to foster parents, but some specialise in the area. So, who does mortgages for foster carers? One of the best is The Mortgage Brain. Lenders like these are a good option, as they understand the ins and outs of fostering and your income.
Does the Process to Get a Mortgage Differ for Foster Parents than Other Types of Employment?
The basic principle of getting a mortgage is the same. Showing proof of income might differ, though. That is because the way you obtain income is different from a regular job. It all depends on the lender’s requirements.
How Can Foster Parents Find the Best Deal on Their Mortgage? Should They Consider a Mortgage Broker?
The best way to find a good deal is to look for mortgages for foster carers. Before you obtain a carer mortgage, though, we would advise that you speak to a mortgage broker. They will help you find the best deal possible.
Fostering while renting is not an issue. Owning your own home is a good idea, though. It provides a little more stability, as a landlord cannot end your tenancy. Plus, you can choose a property with a spare room that has plenty of space for your foster child.
You do not have to wonder ‘can a foster carer get a mortgage?’ ever again. You can get a mortgage as a first-time buyer, and specific lenders will help you secure better mortgage deals. Whether you’re looking at conventional or buy to let mortgages, fostering shouldn’t stop you.
If you have any more questions about being a foster carer, don’t hesitate to contact us here at Orange Grove Foster Care. We are here to ensure all our foster carers and children in care receive the best support possible.
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