Buying a home as a single person, man or woman, can be a challenge. You’ll likely need a large salary and a deposit of at least 10% for mortgage lenders to consider offering you a mortgage. Couples have it a lot easier, with combined income and the ability to raise a deposit between two people and two sets of families.  

This doesn’t mean that buying a property as a single woman is impossible – far from it. However, it will require some extra work and diligence to ensure you get the best possible deal and property. You’ll need to work on making yourself look like a safe bet to lenders and take steps to protect yourself against potential issues in the future.  

Save As Much Deposit As Possible 

The higher your deposit, the better interest rates you’ll receive on a mortgage. Though there are options for 5% deposit mortgages, these can take longer to pay off and cost more overall. A larger deposit will mean smaller monthly repayments and more money to spend on leisure and travel. If your deposit is low, it may help to wait a year or two to build it up further.  

As you will be saving as a single woman, this means you will have to front 100% of the deposit yourself, rather than with a partner. With that said, it doesn’t mean you have to save completely alone. You could ask family for help, either as a gift or with the intention of returning it in the future. Many single people get on the property ladders through a springboard mortgage, which allows them to have the deposit covered for them.

The benefit for any parent or family member paying this deposit for you, is that they will eventually receive the deposit back with added interest. It works similar to a savings account, as the built up interest will eventually release back, assuming no payments are missed on the mortgage.

Raise Your Credit Score 

Your credit score will make a massive difference to whether or not you can get a mortgage as a single woman. It can also determine the level of interest you will pay. It is crucial to ensure your credit score is strong before you start looking for a mortgage. You can improve your credit score by taking out credit and paying it off consistently and on time. You should keep your credit utilisation below 30% and avoid building up too much debt.  

You will find it best to raise your credit score for a number of reasons. Not only can it help you first secure that mortgage, but it will help you keep that mortgage in the future. If you ever decide to remortgage your home or release the equity, then this will be a key step, as banks and lending providers are unlikely to approve requests from those with a low credit score.

There are plenty of apps you can sign up to that inform you of your credit score when you need it, and even inform you of what you can do to improve the figure. These financial experts have created a system that tells you everything you would need to know.

Look For Cost-Effective Coverage For The Property 

When buying a home, it is important to find ways to protect yourself should issues with the building occur in the future. There are various ways to do this, ranging from warranties to certification from a professional that the property is structurally sound. A professional consultants’ certificate (PCC), also known as an architect certificate, can be the most cost-effective way to get peace of mind knowing your property meets building standards. Look for an expert provider like Buildsafe to get the best level of protection.  

It’s worth noting that while a Professional Consultants Certificate is often seen as a popular alternative to a warranty, there are a number of considerations to be taken into account before opting for a non-insurance-based solution that may not actually protect the home-owner should insurance be called upon. The J3 advisory building warranty calculator is a useful tool to get an instant indication on warranty costs.

It’s best to do your research on the different types of coverage that can be applicable to your new home. Some types of coverage may be best for those that are in a bungalow, and some may only be applicable for living in a shared apartment block. There are many variables, and you should understand what type of coverage you need before you purchase something unneeded. 

Build Up Your Emergency Fund 

An emergency fund is critical for any homeowner, which can help you cover essential costs in an emergency. It is best to save at least three months of your regular income for your emergency fund, ensuring you can afford your mortgage repayments and essential living costs should you lose your job or become unable to work temporarily. An emergency fund can also be invaluable for any unexpected expenses that might occur with your property.  

An emergency fund is useful for several reasons other than just covering an expense. It can also help your mental health, as you have that reassurance that you’re not under pressure if anything terrible was to happen. Instead, you can sort the issue when it happens, and move on with your day, before slowly building that emergency fund up again.

There is no set amount that should be saved away in an emergency fund. It just comes down to how much you think you can afford to put away each month, and building up on that each month when you can. You may be able to get more out of your emergency fund by putting it into a savings account that has a favourable interest rate. It’s all circumstantial, and what works for one may not work for another.

Conclusion 

Buying a property as a single woman can be daunting, but it can also be an incredibly rewarding experience. The ability to buy a property alone is an achievement not to be underestimated, and you will have financial stability and peace of mind as a result. It is important to take your time when buying a home and avoid rushing into any purchase. In some cases, it may also help to take some time to build up your savings, credit and emergency fund so that you can get the best possible deal on a mortgage and property.

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