Single Person Mortgages: The complete Guide 2025

Guide to Single Person Mortgages

Buying a home on your own is a bold and exciting move. Whether you’re recently single, a first-time buyer, or simply prefer full ownership, securing a mortgage as a sole applicant in 2025 is more achievable than ever. If you are a first-time buyer, understanding your options for your first mortgage is crucial to making informed decisions throughout the home buying process. However, it’s worth noting that many lenders prefer two-income applicants for assurance that mortgage repayments will be met.

As an experienced mortgage broker, I’ve helped hundreds of single applicants navigate this journey. This in-depth guide is here to walk you through the updated mortgage landscape, explain your options, and help you make confident decisions with the latest lender criteria and market conditions. It will also explain how affordability calculations work for single applicants, so you know what to expect when applying.

Introduction to Single Person Mortgages

Securing a mortgage as a single person may seem daunting, but with the right approach, it’s entirely within reach. A single-person mortgage, often called a single income mortgage relies solely on your income and financial profile.

This means you are solely responsible for the mortgage application, monthly repayments, and all other financial commitments related to your home. For many, this offers a sense of independence and control, but it also means lenders will closely examine your ability to manage mortgage payments on your own.

Getting a mortgage as a single person requires careful planning and a clear understanding of your finances. It’s essential to seek professional advice from a mortgage broker who can help you navigate the process, identify the right lender, and secure the best mortgage deal for your circumstances. With expert guidance, you can confidently approach your mortgage application and take the next step toward homeownership.

What’s New for Single Applicants in 2025?

Falling Mortgage Rates

Mortgage rates have dropped significantly in 2025. As of July, two-year and five-year fixed deals are available from as low as 3.69% with high-street lenders. This drop is largely due to market anticipation of a base rate cut by the Bank of England in August, which has created intense competition among lenders.

Permanent Mortgage Guarantee Scheme

The Government has made the 95% Mortgage Guarantee Scheme permanent. This supports buyers with just a 5% deposit and has encouraged more banks to offer low-deposit products, many of which are available to sole applicants.

Increased Borrowing Potential

Major lenders have updated their affordability models. Some now offer income multiples of up to 5.5 or even 6 times your annual salary for applicants with strong financial profiles. This makes it easier to borrow more as a single buyer, especially if you have a good income and clean credit history.

Relaxed Stress Testing

Several lenders have also reduced how strictly they stress-test future interest rate rises, making it easier to qualify for larger mortgages than in previous years.

Mortgage Market Trends

The mortgage market is more dynamic than ever, with many lenders introducing innovative mortgage deals to attract single income applicants. In 2025, single person mortgages are increasingly accessible thanks to competitive interest rates and flexible repayment options. Lenders are keen to support single income households, offering products that cater specifically to their needs.

Government schemes such as shared ownership and help-to-buy continue to play a vital role, making it easier for single applicants to get onto the property ladder. These initiatives can provide a discounted price on a new home or help with mortgage repayments, reducing the financial burden for first time buyers. Shared ownership allows you to buy a share in a property and pay rent on the rest.

To make the most of these opportunities, it’s important for single income applicants to stay up to date with the latest mortgage market trends and consult a mortgage adviser who can recommend the most suitable mortgage options for their situation.

Assessing Mortgage Affordability

Understanding how much you can borrow is a crucial step for any single person considering a mortgage. Most lenders use a mortgage affordability calculator to evaluate your annual income, credit score, and debt to income ratio.

This helps determine the maximum loan amount you can comfortably manage, ensuring your monthly repayments fit within your budget. Your overall affordability is assessed based on your monthly income, expenses, and current interest rates.

Single income applicants should review their credit history and be mindful of other financial commitments, such as paying bills or existing debts, as these factors influence mortgage affordability. Having debts can negatively impact your debt-to-income ratio, which is part of the mortgage affordability calculation.

Maintaining a good credit score and demonstrating a stable income can significantly improve your chances of getting a mortgage. Before applying, take time to assess your financial situation and use online tools to estimate your potential monthly repayments. Preparing the necessary documentation is key for a smooth mortgage application process. This will help you approach most lenders with confidence and clarity.

Best High-Street Lenders for Single Applicants

These mainstream lenders provide the most competitive products and are well-suited to employed applicants with standard income and good credit.

A higher minimum deposit reduces your loan to value ratio, which is a key factor mortgage lenders use to assess risk and determine your interest rate. Each mortgage lender has its own eligibility criteria some require a minimum credit score for certain mortgage products, while others are more flexible.

Benefits of high-street lenders:

• Wide range of products for different needs

• Most mortgage lenders have streamlined application processes and clear minimum credit score requirements

• Competitive rates for applicants with good credit and stable income

Benefits of High-Street Lenders:

• Lower interest rates

• Fee-free options

• Faster approval processes

• Ideal for clean credit and PAYE income

Specialist Lenders for Non-Standard Situations

If you’re self-employed, have a less than perfect credit score, or need to use alternative income sources (e.g., bonuses, overtime, or contracting), these specialist lenders can be a better fit. Specialist lenders often have more flexible lender’s criteria, which can benefit applicants with complex income or a bad credit history.

A single applicant mortgage is designed for those applying alone, while joint mortgages are available for joint applicants who wish to combine their incomes. Single income mortgages are suitable for borrowers relying on one income source, but joint applicants may benefit from higher combined credit scores and greater borrowing potential compared to applying alone.

Credit scores play a crucial role in determining eligibility for both single and joint mortgage applications.

Why Use Specialist Lenders:

• Manual underwriting: Your story matters, not just your numbers

• Accepts credit blips and unusual incomes

• Access to niche products not available on the high street

Who Can Apply for a Single-Person Mortgage?

Anyone aged 18 or over can apply for a mortgage alone. But lenders will carefully assess the risk, as there’s only one income stream to rely on.

Here’s what matters most:

How much a single person can borrow depends on your income, deposit, and the lender’s criteria using a mortgage calculator can help you estimate your borrowing limit.

Income

• Employed: Usually need to earn £24,000+, though £30–35k+ opens more options.

• Self-employed: Typically require 1–2 years of accounts or tax returns.

• Contractors: Can often use daily rate extrapolated over a year if you have a consistent contract history.

Deposit

• Minimum deposit: 5% for standard products.

• 0% deposit: Available through schemes like Skipton’s rent-based mortgage or Right to Buy deals.

• 15–20% deposit: Recommended for specialist lenders or if you have credit issues. Most lenders will require a minimum deposit of 5% to 10% for a mortgage application.

Credit History

• Good credit: Opens doors to the best high-street rates.

• Adverse credit: Still possible through specialist lenders, depending on severity and timing.

Property Type

• Standard residential homes: Preferred by high-street lenders.

• Flats above commercial units, ex-local authority, non-standard builds: May need a specialist.

How to Decide Which Route to Take

Here’s a step-by-step process to help you decide where to apply and what kind of mortgage is best for your situation. It’s crucial to find the right mortgage deal for your needs, as this can significantly impact your long-term financial stability. Additionally, keep in mind that changes in the property market can affect mortgage availability and rates, so staying informed is important. Additional costs must be factored in alongside your deposit, such as legal fees and surveys.

Step 1: Assess Your Income and Deposit

If you earn over £30k and have a 5–10% deposit, start with high-street lenders. If you’re self-employed, or your income is less predictable, consider specialist lenders early in the process.

Step 2: Review Your Credit Report

Check your credit score before applying. A poor score doesn’t mean rejection but it determines which lenders are viable.

Step 3: Get a Mortgage in Principle (MIP)

An MIP shows estate agents you’re serious and gives you a realistic budget based on lender criteria. It also lets you compare borrowing limits across different providers.

Step 4: Consider the Full Cost of the Mortgage

It’s not just about the interest rate. Consider:

• Arrangement and legal fees

• Product length and flexibility

• Early repayment charges

• Cashback offers

• Portability if you plan to move

Step 5: Use a Broker

A mortgage broker can:

• Access exclusive products not listed online

• Advise you on the best lender for your situation

• Help you prepare the strongest application possible

• Save you time, money, and stress

Overcoming Challenges as a Single Applicant

While single person mortgages can present unique challenges, there are effective solutions available for single income applicants. Limited income or a poor credit history doesn’t have to be a barrier to homeownership. Guarantor mortgages, for example, allow a family member to support your application by guaranteeing the mortgage repayments, which can reassure lenders and improve your chances of approval.

Specialist lenders also offer tailored mortgage deals for those with bad credit, low income, or complex financial backgrounds. These lenders are more flexible in their criteria and can consider applications that traditional high street lenders might decline.

Working with a mortgage broker is invaluable in these situations they can match you with the right mortgage deals, help you address any credit history concerns, and guide you through the process of securing a mortgage that fits your needs.

Benefits of Getting a Mortgage Alone

• Full control: You make all the decisions about the property and repayments.

• No shared financial liability: You’re not tied to someone else’s credit profile or debt.

• Faster decision-making: No need to coordinate paperwork or finances with a co-applicant.

• Tailored support: Lenders now offer products designed specifically for solo buyers.

Long-Term Mortgage Planning

Planning for the long term is essential when taking out a single person mortgage. As a single income applicant, it’s important to think ahead about how changes in your personal circumstances. A job change or a reduction in income could impact your ability to make monthly payments.

Choosing a mortgage deal with flexible terms and manageable mortgage repayments can help you maintain financial stability over time. If you increase the size of your deposit, it may become easier to buy a property worth more than your affordability allows.

Consulting a mortgage adviser is a smart move for single income households. They can help you review your mortgage options, understand the implications of early repayment charges, and create a plan that aligns with your long-term financial goals. Single applicants should speak to a mortgage broker who specializes in solo-income applications for tailored guidance.

By taking a proactive approach and seeking professional advice, you can secure your place on the property ladder and ensure your mortgage remains affordable and sustainable for years to come.

Final Thoughts from a Mortgage Broker

In 2025, solo buyers have more support than ever before. The combination of competitive rates, improved affordability criteria, and flexible government-backed schemes means it’s absolutely possible to buy a home on your own.

Whether you’re just starting to plan or ready to apply, you don’t have to do it alone. As a mortgage broker, I work with both high-street and specialist lenders to match you with the right deal, even if your situation isn’t “perfect” on paper. It may be worthwhile to look into family members for potential gifted deposits.

Get help from an experienced mortgage broker.

You can speak to one of our specialist mortgage brokers who would be able to guide you through the process. They will advise if there is a lender available and the maximum loan amount based on your circumstances. We are a whole of market mortgage brokerage with access to all lenders. Call us on 01332 470400 or complete the form with your details for us to give you a call back.

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