Foster Carer Mortgages

As a foster carer you may wonder if there are specific mortgages available. We’ll help you find the most suitable deal in the mortgage marketplace. 

Are there specific mortgages for foster carers?

Mortgages aren’t designed specifically for any professions, but there will almost certainly be a mortgage out there that will help you achieve your property goals. 

We work with dozens of mortgage lenders, from the well known high street brands to niche specialist providers. Each one has their own unique criteria about the customers they want to work with. 

Getting a good mortgage deal is all about finding the right lender and product for your situation. We recognise that foster carers have some specific challenges, including the fact that your income can vary depending on the placements you have at any given time.

How do I find the right mortgage for foster carers?

The simplest way to find a deal that will work for you is to sit down with a broker. We’ll explore your situation, your lifestyle and what you want to achieve – all of that will help us identify a good lender to approach. 

Many lenders will consider a foster carer as being self-employed. This doesn’t make it any harder to get a mortgage, but it may mean you need to provide more documentation as part of the application process.  

How do I qualify for a foster carer mortgage?

Most lenders will expect you to have been working in foster care for a minimum of six months, and will want details of how many children you care for, including any biological children. The number of dependents you have is a factor in how much you can borrow – and some lenders will include foster children in that calculation.

Lenders want reassurance that your work in foster care will continue for the foreseeable future, and may request a letter to that effect from the local authority or agency that you work with. 

The other key criteria to get a mortgage are that you have been resident in the UK for three years and be aged over 18.

What can I do if I’m a foster carer who’s struggling to get a mortgage?

One of the key challenges for foster carers is that many lenders don’t include your Carer’s Allowance as part of your income. If you are having trouble finding a mortgage for the amount you need, this could be the reason. 

Some mortgage providers are more understanding about foster care, however, and will accept 100% of your Carer’s Allowance in their calculations. 

If you have less than perfect credit, that can also affect your chances of getting a mortgage. So if you are finding it hard to get the borrowing you want, talk to us. We know the lenders that are more lenient around bad credit and foster care as a form of employment. 

As a foster carer, how much can I borrow?

It’s quite possible that if you approached five different lenders, you would be offered five different sized mortgages. Each provider has their own calculations to assess your borrowing potential. 

Affordability is generally based on your income, your credit rating and your monthly commitments. Our approach is to explore your finances and get you an Agreement in Principle with a lender, so that you know exactly how much you can borrow and that you’re likely to be approved for the loan.

What documents will I need to prove I can afford a mortgage?

Aside from ID documents such as a passport, driving licence and utility bill, you will usually need three to six months’ remittance forms from your fostering service. Some lenders may also ask for tax documents stating your annual income. You will also need three to six months’ bank statements. We will explain what’s needed so that you have time to collect all the information required

How can a Mortgage Broker help me?

We recognise the many challenges – and rewards – of working in foster care, and it’s our job to make finding a mortgage simple and less stressful. 

By looking at your specific situation we can recommend to you how to obtain an affordable and fair mortgage deal – whether you’re looking to buy a home for the first time, move house or remortgage your property.

An initial conversation is completely free of charge, so get in touch to understand more about how we can help. 

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS

Approved by The Openwork Partnership on 17.04.23