Fee Free Mortgage Service for Foster Carers
Fostering children can be incredibly rewarding. Giving a home to a child who is in desperate need of a stable family environment can be life-changing, for both your foster children and for you.
If your current home isn’t big enough, you will need to extend your home or buy a new house. As such, you will probably need to get a new mortgage loan, be that for home improvements or a new property. Getting a good deal is vital as you will want to make as many savings as possible to care for the welfare of the child/children in your care.
Be aware, however, that some lenders require a higher than average deposit from foster carers and some will deduct fostering income when calculating affordability. As such, foster carers don’t always get the best mortgage rates on the market. Fear not, however, as we are here to help.
Our foster carer mortgage specialists have contact with the majority of mortgage lenders in the UK. We know which lenders have experience of both prospective foster carers and approved foster carers, and which are more likely to offer competitive deals.
If you’re a foster carer or maybe you have been speaking to your local authority about fostering, get in touch with an expert mortgage advisor from our team for mortgage advice.
Keep reading to learn more about mortgages for foster carers.
Can I get a bigger house to foster?
If you can afford to get a bigger house, then yes. Your local authority or your fostering agency will want to know that you have at least one spare bedroom so if your current property is lacking the extra space, then moving to a larger home could be the best thing to do.
Beyond a spare room, consider what else you will need from your new property and search accordingly. Remember to budget your finances beforehand and narrow down your search to those houses that are in your price bracket. When budgeting, add up your fostering income and any other earnings you receive and deduct your expenses. By doing so, you will have a rough idea of what you can afford to pay on a mortgage loan.
When it comes to getting a mortgage for your new home, we are here to help. After you have found a property that is suited to your families needs, a YesCanDo mortgage advisor will point you towards the best mortgage lenders for foster carers.
Which lenders provide mortgages for foster carers?
Most high street lenders provide mortgages for foster carers. But to get the best mortgage deals, you may need to look beyond the high street.
This is because some high street lenders will assess your mortgage affordability using your net profit after deducting your foster carer allowances, rather than using your total income. This will give them an inaccurate income figure so you may be locked out of mortgages with the most competitive rates.
To ensure your chances of a better mortgage deal, look for those lenders that will take your total income into consideration. Search for the lenders that specialise in foster carer mortgages and compare their deals to those you can find elsewhere.
For more advice, get in touch with our team of expert mortgage advisers. We work with both high street lenders and specialist mortgage lenders, and we know which will take all of your fostering income into account. We also know which lenders offer the best rates so have the ability to secure you a competitive deal.
Which mortgage lenders offer the cheapest mortgages for foster carers?
When it comes to finding the cheapest mortgages for foster careers and prospective adopters, look for the lenders that will take your fostering income into account as these are likely to offer you a more competitive rate. As we suggested, these are likely to offer you a more attractive deal than those without an understanding of your fostering circumstances.
High Street Lenders that consider foster carers
To further improve your chances of a cheaper deal with a high street lender, you should put down as big a deposit as you can. As well as a larger deposit, you should also take steps to improve your credit score, especially if you have a low rating because of your credit history. Reducing your monthly expenses several months before you make your application is also a good idea as this will give the banks and building societies a more favourable opinion of your income.
For more advice, speak to our expert advisers. We can access the cheapest mortgages for foster care parents so can point you towards the lenders that are right for your needs.
What size deposit will I need as a foster carer?
As with any other mortgage applicant, you will need a deposit of at least 5% of the total value of the property you are considering. Depending on the lender criteria, you might need more than this so it’s wise to save up as much money as you can before you make your application.
How long do I need to have been a foster carer before I apply for a mortgage?
You can apply for a mortgage before you start fostering but you will of course need another source of income. If you are still waiting to be approved as a foster carer and don’t have any other earnings coming in, you are unlikely to be accepted for a mortgage.
If you decide to pursue a mortgage based on your fostering income, then you will need to have been a foster carer for at least six months. Some non-high street lenders may consider your application if you have been a foster carer for three months but you may not be eligible for the most competitive rates on the market.
How do I evidence my fostering income?
Foster carers are typically asked to show the remittance slips from local authorities or fostering services as evidence. However, it can vary between lenders, so you may also need to show another form of evidence, such as your bank statements or your self-assessment tax returns.
Can I use the Help-to-Buy Scheme?
If you’re a foster carer and a first-time buyer, you may be eligible for the Help-to-Buy scheme. You will need to find a mortgage lender that accepts the scheme but when you do, you will have the opportunity to buy a new-build home with a 5% deposit.
Our mortgage brokers can point you in the direction of those lenders that do accept applicants using the Help-to-Buy scheme so get in touch if you’re a first-time buyer.
Can I remortgage my current home?
In short, yes! A remortgage can help you with debt consolidation or an extension for an extra bedroom, so talk to our team if you would like to remortgage for these purposes.
You can also remortgage if you want access to a better rate of interest as this is a way to reduce your monthly repayments. Get in touch with our expert mortgage brokers to learn more.
How Can YesCanDo Money help me?
If you are currently looking for a foster carer mortgage, our qualified mortgage advisors are here to give you advice and support.
Whether you’re looking to remortgage or get a mortgage for a new home, our mortgage advisers can secure the best deal for your particular set of circumstances. Deals will vary depending on your foster care income, the type of property you are considering, the size of the deposit you are able to put down, and your credit history, and we will take all of these into consideration when searching the mortgage market.
We will help you throughout the mortgage process, so as well as giving you expert mortgage advice and getting you a great deal, we will help you with the mortgage application too. We will also liaise with your mortgage lender on your behalf. We do all of this and more for FREE.
So, if you want to get a mortgage, use our contact details to request an appointment with us and benefit from the excellent services we can offer you.