My name is Peter Stamford and I was a Foster Carer for almost 10 years before founding Moor Mortgages.
Throughout my time as a Foster Carer I was continually unhappy with the levels of customer service at the big mortgage firms, when it came time for my remortgage. I knew there had to be a better way.
So I designed it!
I was interviewed by the Childrens Family Trust about transferring my skills from a Foster Carer to becoming a specialist Fostering Mortgage Adviser
We love that you’re a Foster Carer – you’re doing such an important job!
Can you get a Mortgage with Foster Care Income?
Yes, but it can be tricky.
Some Mortgage Lenders view Fostering Income as a benefit, to be logged alongside Job Seekers Allowance and Universal Credit.
Some won’t allow it at all.
Some want 2 years steady income proved with tax returns.
But there are a few good lenders out there who will welcome Foster Carers and ask for less paperwork.
I can help you find the best deal for your circumstance.
Here is a quick example of why you should use a Specialist Foster Carer Mortgage Adviser...
All 3 families earn £25,000 per year, yet amazingly all 3 would get their lowest rate by going to different lenders.
You might be wondering: why?
Family 2 could go to Bank A who have the lowest rates on the market. Bank A will accept all of the Supermarket income, but only half of the Fostering income. That’s OK though because that is enough to cover affordability.
Family 3 can’t go to Bank A because Bank A demand that the fostering income has to be steady and predictable. They can go to Bank B because Bank B is more flexible with regards to secondary incomes, but their rates are not as good as Bank A.
Family 1 can’t go to Bank A because Bank A demand that the fostering income has to be steady and predictable. They can’t go to Bank B because Bank B won’t accept fostering income as a primary income, only a secondary one. They can go to Bank C who are more comfortable with fostering income. Bank C have the least competitive rates because of this.
If Families 2 and 3 used a Mortgage Adviser who didn’t understand the complexities and nuances of Foster Carer Mortgages they would most likely all end up with Bank C (because that’s seen as the Fostering Mortgage Bank) and it would cost them thousands of pounds over the course of their loan
If you’d like to know more I have written the most comprehensive guide to Foster Carer Mortgages available anywhere.
Seriously, if you find a better one let me know!
Let’s dive into the process you’ll go through, step by step.
With a clear understanding of your budget, you can start your exciting property search. Explore listings from different estate agents as they often have different options available. Don’t hesitate to ask questions about the local areas and the condition of the properties you’re interested in.
When you finally find your dream home, it’s time to make an offer! The great news is that with your DIP secured, you’re in an excellent position to make a solid offer on the property. Once your offer is accepted, it’s time to move forward with your application.
Your mortgage adviser will guide you through the full mortgage application process. This is when the lender will also arrange for a mortgage valuation to ensure everything is in order
The solicitors or conveyancers will handle the legal side of things.
They will draw up contracts for the purchase and carefully check all the details to ensure accuracy. They’ll look out for any tricky clauses in the title deeds and examine leases for potential future issues.
Exciting times ahead!
Your solicitor and the seller’s solicitor will exchange contracts. At this stage, you haven’t made the full payment yet, but you have legally agreed to buy the property on a specific date. This is also when you hand over your deposit money and must have buildings insurance
The big day has arrived! Completion takes place once you’ve exchanged contracts and paid for your new home in full. The money is transferred to the seller’s solicitor, and finally, the keys are released to you. It’s time to celebrate and step into your new home!
Some of the most commonly asked questions…
There is not a dedicated mortgage calculator for Foster Carer Mortgages, because the income is treated differently by each lender. Speak to an expert who specialises in Mortgages for Foster Carers to find out what you can borrow.