Becoming a homeowner is a milestone for many in the UK. Every year, the prices of homes tend to increase, contributing to elevating the mortgage restrictions. In such scenarios, affording a home purchase alone seems challenging.

Solo homeownership means relying on a single income for home purchase. If it is like that, your earnings can only be used for this purchase, and it will be less burdensome. However, in most cases, you have other financial responsibilities to manage as well.

The money that comes to your bank account gets spent off easily. To plan for the achievement of this major financial goal, you must be able to allocate a significant amount of money.

Despite all the hardship, you can work towards fulfilling this target. This is because a portion of the cost can be covered by borrowing. Irrespective of your financial situation, you can get a mortgage as a single parent with bad credit as well.

You should not rely on external funds solely. This will not be the right way to achieve homeownership. Internal funds should be involved so that there is a balance between both.

Complete overview of whether buying a home alone is affordable

With time, renting has no longer remained a suitable option for many. The rent prices grow, thereby making tenancy unaffordable. You could be a couple who wants to buy a home, or you could be a single parent.

These two scenarios are different. In the first case, you can share responsibility with each other. On the flip side, the second case leaves no scope for sharing financial responsibilities. To understand whether buying a home is affordable for single earners, find out the true cost of homeownership.

·       Take a closer look at affordability

This can be determined after you analyse your income, expenses and deposits you should gather. Then, you can compare your income, the amount you can keep aside for this goal and current house prices.

The important metric that should be assessed here is the price-to-income ratio. With the findings, you can understand if you are in a position to afford homeownership singlehandedly.

At the same time, you must pay attention to the number of years of income it must take to be ready to make this vital decision. Qualifying for a mortgage might not be difficult. However, managing the overall cost with a single earning might be difficult.

·       Financial hurdles you have to overcome

It would be great if you had someone else to take care of the household expenses. The financial burden will ease off, and you can focus on your goal without any anxiety. However, if you are someone who is responsible for managing all the expenses, you will have to pay attention to some of the aspects.

Deposits

If you have an average earning status, saving for a deposit will be challenging. Ideally, you must create a bigger deposit so that you do not have to borrow more. This means that you will have to repay less, and this will reduce the chances of future financial complications.

Monthly mortgage payments

You should calculate if repaying loans taken out for a home purchase will be possible for you in the coming days. This is because loan payments should start after some time. It should be paused or delayed at any cost, or else this is not going to be good for your finances.

·       Tips to help you become a homeowner with a single income

Buying a home alone is not an unachievable task. All you need is some calculative steps to portion out the cost in a smart manner. You must be aware of your financial potential and limitations to materialise this dream.

§     Find out your maximum budget

How much you can afford and how much you can budget will be two essential aspects. Mortgage providers might consider approving up to 4 to 4.5 times your income.

Borrowing the maximum amount offered is not recommended. This can increase your financial pressure, and the process might get stuck midway.

It would be better if you borrow below your maximum borrowing limit. You must keep the increase in interest rates in mind. It can change the overall cost, thereby making borrowing unaffordable for you.

§     Be a smart saver

You have to save money for this goal. However, it does not mean that you should be saving money harder. You need to plan everything smartly.

Think of ways that can help in accelerate the speed of saving process. You can invest in schemes that can help you get great returns when you want them.

Avoid spending money that comes from bonuses or tax refunds. This is extra money which can be conveniently used for saving purpose. This will help in saving faster.

Look out for opportunities that let you save more with time. It might happen that some usual expenses can be paused for a while. Do not hesitate to take up such steps if they seem to be beneficial in the fulfilment of this goal.

§     Increase your income

It might seem difficult to increase your income when you are parenting single-handedly. You have kids to look after, and starting to earn more would mean spending more time working.

However, this need not be very difficult. This is because you can choose part-time projects to work on. This gives you the liberty to work when you are free.

Besides, some of the opportunities let you work from home as well. In addition, if you are investing money smartly, you do not even have to bother about doing side jobs.

Some of the investment returns might surprise you, as they might be equal to what you can generate from a side income.

The bottom line

Getting a mortgage should not be a sprint. Rather, it should be done thoughtfully and after deep analysis. You will come to know how considering a private mortgage lender can prove to be helpful for your situation.

Pre-qualifying is one such facility, i.e. accessible with these lenders. You can apply for pre-approval online to check the terms and conditions. There is no need for you to go through any hard checks.

A soft analysis would be enough, and if the pre-approved offer seems suitable, you can go ahead. This lending procedure does not match the traditional process of lending.