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Answered: can you buy a new home on your own?

  • 29/04/24
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When it comes to buying a home, whether it is your first home or your next home, it is a significant milestone and an opportunity that a lot of people think they are unable to achieve unless they are buying a home with a partner, parent, spouse, or friend. The reality is quite different. 

Most home purchases are achieved with the security of a mortgage in place therefore buying a new home requires a certain level of financial affordability. Whilst most mortgages require two consistent salaries to obtain the best rates, it is a common misconception that a single person cannot achieve a mortgage on their own. 

Affordability is the main concern for buying a new home on your own however it is possible for single individuals, whether married or not, to buy a home on their own as long as they meet the borrowing criteria set out by their mortgage lender. Mortgage lenders will assess each individual's eligibility based on a range of factors and risks including income, credit history, outgoings and expenses and overall affordability. 

Here are our top tips for buying a new home on your own: 

  1. Keep an eye on your credit score 

    This is one of the first things that will be reviewed by a financial advisor or mortgage lender. Keeping on top of regular payments and using a low amount pf credit (referred to as your credit utilisation score) will help improve your score. There are lots of free online tools you can use, and some banks also provide in-app score checkers. 

  2. Plan in advance

    If you are starting to think about buying your home, begin making your plan early. Take the time to assess your income and expenditure accurately, cutting back where you can for a long period will help to demonstrate your ability to manage your finances. 

  3. Calculate your budget and your monthly payments

    It is important not just to consider mortgage repayments when planning your monthly expenses. Buying a new home can be costly when you add up mortgage repayments, utilities, maintenance and legal fees alongside day-to-day living expenses. When reviewing your planned expenditure, remember that buying a new build home should help to reduce maintenance costs as your home will be covered by a 10-year NHBC warranty.

  4. Explore your options

    There are lots of mortgage products available on the market with lots of different rates. These products can be confusing if you have not been exposed to them before or if you are buying your first home. Whilst researching online is a great place to start, an independent financial advisor will have visibility of the best mortgage rates and be able to help guide you towards the best rates on the market for you.