Is getting a mortgage harder if you have a low income? Finding a lender may be more challenging, and you’ll likely have fewer options for the mortgage you choose. But is it impossible? Absolutely not. Furthermore, even if your income is lower, you should be able to own your own home with the correct planning and professional assistance from a mortgage broker like Habito.
Unlocking Your Homeownership Dreams with a Smaller Salary
So you’re dreaming of owning your own home, but your income isn’t exactly rolling in like a king’s ransom. Fear not, fellow low-income warrior! Getting a bigger mortgage on a smaller salary is absolutely achievable, and we’re here to equip you with the knowledge and strategies to make it happen.
Let’s Dive into the Nitty-Gritty
1. Boost Your Buying Power with a Deposit Boost
- Family Springboard: This nifty little scheme lets your loved ones put 10% of the property’s value into a savings account, acting as security for the lender. Miss a payment? Their savings step in, and they get their money back with interest after a set period.
- Deposit Unlock: This gem allows you to purchase a new build home with only a 5% deposit. Talk to our team of expert builders to find the perfect match.
2. Income Boost: Supercharge Your Affordability
- Joint Borrower Sole Proprietor: Add a relative’s earnings to your mortgage application, giving you a higher combined income and access to a bigger loan.
- Dynamic Ownership: Team up with friends or family to buy a home together, each owning a share and contributing to the property’s value over time.
3, Shared Ownership: A Clever Stepping Stone
Instead of buying a whole house, shared ownership lets you purchase a share and pay rent on the rest. This means a smaller mortgage and deposit, making it easier to get on the property ladder. As your financial situation improves, you can “staircase” your way to owning the entire property.
4. Private Equity Loans: Top Up Your Deposit
To close the affordability gap and buy the home of your dreams, obtain a second loan secured by your house.
5. Professional Advantage: Higher Lending Schemes
High-earning professionals, such as doctors and lawyers, frequently qualify for programs that offer mortgages up to five 5 times their salary.
6. Maximize Your Mortgage Potential with Tembo
Our award-winning platform helps you discover your true affordability, comparing over 20,000 mortgage products and 15 specialist schemes in seconds. We’ll show you personalized interest rates, indicative monthly repayments, and connect you with an expert mortgage advisor to guide you through the process.
Remember:
- Credit Score: A sparkling credit score is your golden ticket to lower interest rates and better deals.
- Debt Management: Pay off existing debts to demonstrate financial responsibility.
- Savings: Every penny counts! The more you save, the bigger your deposit and the better your mortgage options.
Don’t let a low income hold you back from homeownership. With the appropriate tactics and professional direction, you can unlock your ideal home and create a promising future.
Ready to take the first step? Create a Tembo plan today and discover how much you could boost your buying budget.
Additional Resources:
- Tembo Savings & Mortgage Platform: https://www.tembomoney.com/
- Habito Mortgage Guide: https://www.habito.com/hub/article/getting-a-mortgage-on-a-low-income-your-helpful-guide
- Joint Mortgages: https://www.tembomoney.com/learn/how-to-get-bigger-mortgage
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Including benefits in your income
In the same way that you would submit paystubs to demonstrate your income from employment, you can provide proof of your payments to a potential mortgage lender if you receive benefits (such as Universal Credit). Just be aware that not all mortgage lenders are happy to count benefits as additional income. For mortgage advice and help finding a specialist lender that does, we at Habito can help. Â.
What can help you get a mortgage on a low income?
Life moves on while you patiently save up, which makes it difficult to climb the housing ladder when you have a low income. Perhaps you can afford a modest home in a certain area, but you require additional bedrooms, a workspace, or to be close to your place of employment. Â.
Thankfully, there are options that can help you to afford the home you actually need.Â