Lifestyle,  Money

What To Do When You Can’t Afford A Mortgage On Your Own

You want to buy a house, so you’ve done a few mortgage affordability checks. After divulging all of your financial information, you discovered some worrying news. 

At this moment in time, you can’t afford a mortgage. 

You’re simply not earning enough compared to your expenses to afford monthly repayment costs – even on long-term mortgage loans. So, what do you do next? There are three main solutions – one is obvious, but the other two may surprise you…

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Save More Money

This is the obvious solution when you can’t afford a mortgage. Go back to the drawing board and focus on saving more money. Cut down your monthly expenses and consider trying to unlock extra income. If you’re earning more and spending less, you increase your capacity to make monthly mortgage repayments. 

At the same time, saving money can help you raise the funds for a larger deposit. This will mean you need to borrow less money, so the repayments are easier to manage. The only problem with this solution is that it’ll be a long time before you can finally get the mortgage you’re after. 

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Get a joint mortgage

The second idea is to apply for a joint mortgage. Surprisingly, many people aren’t aware these exist! You will come across lots of mortgage types, but this one is very self-explanatory. You pool your resources together with someone else and submit a joint application. 

Here, both of your finances are considered, which usually means you’re seen as a more reliable borrower. You’re also both responsible for the loan and have joint ownership of the property. This means the pair of you will live there and have control of the house. So, it’s a solution that is usually reserved for couples or married partners. Sometimes, family members could also submit a joint mortgage application – or it is possible to get one with friends. In fact, some lenders allow up to four people to apply for one of these mortgages. If you don’t have enough money on your own, this is a very viable solution. 

Get a joint borrower sole proprietor mortgage

Thirdly, you could opt for something similar to a joint mortgage. A joint borrower sole proprietor mortgage is ideal for people who struggle when determining affordability yet also don’t want to own a house with anyone else. You want to be the sole owner of the property, but you need some extra financial support from elsewhere. 

In this scenario, you apply for a mortgage with another borrower, but they don’t own the house. They almost act as a guarantor, so they pay the loan if you fail to do so. It’s not uncommon for a parent to apply for this type of mortgage with their child, helping them get on the property ladder. 

What you see here are three alternative routes to go down if you can’t afford a mortgage at this present moment. Those of you who are happy to wait should focus on saving money and getting into a more commanding financial position. If you have a partner or want to live with a sibling or friend, joint mortgages work well for you. Finally, if you need extra financial assistance but want to retain sole ownership of your home, think about a joint borrower sole proprietor mortgage. 

*Collaborative post.

Rachael is a 31 year old mum to 10 year old Luke and 5 year old Oscar. She lives in England and writes about family life, crafts, recipes, parenting wins(and fails), as well as travel, days out, fashion and living the frugal lifestyle.


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