If you are worried that you might not be able to get a mortgage as a single person, you’ll be happy to know that it is very much possible. Single people get mortgages all the time! The steps involved in buying a house on your own are essentially the same as buying a house with a wife, husband or partner. Follow our mortgage application steps below to help.
Mortgage Application Tips if you are Single
Mortgage Lenders and Advisors
You can apply for a single-person mortgage by applying directly to a lender such as a bank or credit union or local authority and looking after the application process yourself.
Using a mortgage broker who will deal with lenders on your behalf and advise you during the process. In the beginning, it is important to ask the broker for their ‘Terms of Business”, what they charge and how many lenders they represent.
Documents you will need:
You will need certain documents when you apply for a single-person mortgage and you should keep a copy of anything you give to a lender or broker.
- Proof of ID, proof of address and proof of your Personal Public Service Number (PPSN)
- Proof of income: latest P60, payslips, certified accounts if self-employed
- Evidence of how you manage your money such as current and loan account statements for the last three to 12 months, depending on the lender
What do mortgage lenders base their decision on?
Your Income – lenders will look at your annual income and some may take bonuses and overtime into account. Some may factor in rental income if you plan to rent out a room.
Your Age – what age you are now, what age you will be when you retire and/or when the mortgage ends.
If you have any outstanding loans – if you have other loans or a high credit card balance this may reduce the amount you can borrow or may affect your ability to get a mortgage.
Your employment status – a lender will look at whether you are in permanent employment or on probation. If you work on a contract they may require you to be employed for at least 12 months with the same employer or be on a second contract with the same employer.
Your residential status – are you a resident of Ireland or a returning emigrant?
Your financial outgoings – lenders will take your other financial commitments, such as childcare, into consideration.
Your money management – lenders will look at your bank statements and assess things like your ability to meet direct debits and standing orders if you are using an overdraft facility on a regular basis if there is evidence of excessive use of online gambling etc.
Your savings & saving history – this shows that you have saved enough for your deposit and have the ability to save a set amount of money on a regular basis.
Your credit history – this shows your track record of paying other loans in the past. Poor credit history can prevent you from getting a mortgage.
Your target property value – the purchase price of the home you want to buy (if you have one in mind) and the value of your current home, if you plan to sell and buy a new home.
The amount you want to borrow – this is the amount you apply for and is the difference between the purchase price of the property and the deposit you have saved.
If you are thinking of applying for a mortgage and would like to find discuss it with a mortgage expert, speak to a member of the Irish Mortgage Corporation team who can advise you on your options.