Becoming a foster carer can be rewarding, but it may introduce some mortgage complexity. This is primarily because foster income doesn’t always fit neatly into traditional lending criteria. Here we’ll explain how mortgages for foster carers work, what challenges you might face, and how lenders assess affordability.
Are there specialist mortgages for foster carers?
Although there’s no specific foster carer mortgage product, there are nationwide lenders who can offer mortgages tailored towards foster carers.
These mortgages tend to be more flexible to reflect the unique type of income structure of foster carers, where your pay often comes from local authorities or agencies rather than standard employers.
Mortgage challenges you might face as a foster carer
The key challenges for foster carers looking to get a mortgage include:
Treatment of income
Some lenders still do not recognise fostering allowances as qualifying income for affordability purposes (or only permit a portion of it).
Instead, they may only consider more common forms of income, which can mean you have a reduced pool of lenders to choose from.
Documents and evidence
Because fostering income is often paid by local authorities or agencies, and may be treated differently for tax purposes by HMRC (due to qualifying care relief), verifying your income may fall outside the capabilities of high street banks and lenders.
Most mainstream lenders will require extremely detailed and specific proof of any past, present or future fostering.
Require expert guidance
Specialist mortgage brokers can help present your complete income picture correctly, using alternative details such as fostering statements, tax documents, or confirmation letters from your agency.
While some lenders struggle to assess foster income, there are specialist lenders who regularly work with foster carers, and your broker can introduce you to them.
Getting a mortgage as a foster carer
The process for foster carer mortgages works much like a standard mortgage application, but with an introduction to a more flexible lender.
Here’s how to get a mortgage as a foster carer:
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Work with a broker who understands foster income: Many specialist lenders only accept applications through brokers who can verify your fostering history and income.
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Provide evidence of your fostering payments: This could include tax returns, payslips, fostering statements from your agency, or letters from your local authority.
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Show a stable fostering history: Most lenders prefer at least 12 to 24 months of consistent fostering income and a likelihood of future income to demonstrate long-term stability.
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Apply with the right lender: Even if your income varies or includes additional benefits, some lenders can still consider your full fostering allowance, giving you the ability to borrow more.
Begin your mortgage journey
Affordability for foster carer mortgages
When assessing your affordability for a foster carer mortgage, the key factor is how lenders treat your fostering income. Some lenders will count 100% of your fostering allowance, while others may use a percentage, typically ranging from 50% to 80%, to account for variability in placements or gaps between children.
Specialist and niche lenders are more likely to include your full fostering income when calculating how much you can borrow. The best way to increase the amount you can borrow is to provide as many relevant documents as possible and ensure you're working with a broker who will introduce you to the most flexible lender.
UK mortgage lenders for foster carers
Here are a few examples of popular UK lenders that may be open to offering mortgages for foster carers:
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Virgin Money: For foster carers, Virgin will treat your income as self-employed, meaning you’ll need at least 2 years’ worth of records, and you’ll have to list anyone living with you in foster care as a dependant on your application.
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Accord Mortgages: One of the few lenders that will accept 100% of your foster income in the affordability calculations. But, you’ll need to provide supporting evidence like bank statements and a letter to confirm the children who are in your care from the fostering agency or local authority, along with meeting Accord’s standard self-employed criteria.
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Nationwide: Foster income is treated as self-employed income by Nationwide, and you’ll need a letter from your agency to confirm the total income paid for the last 2 years. It must also confirm that the recent year's figure is likely to continue at the same level for the foreseeable future.
If you’d like to see all your realistic lending options for a foster carer mortgage, it’s best to have a quick chat with an experienced broker who can introduce you to the most appropriate lender for your needs.
Why choose Money Helpdesk for your foster carer mortgage
We work with brokers who specialise in helping foster carers secure competitive mortgages, even if your income or employment structure is different from the norm.
Here’s why foster carers across the UK choose us to help them get a mortgage:
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Access to brokers with experience getting mortgages for foster carers
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Free initial chat with no obligation to proceed further
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Our advisors are 5-star rated on leading review platforms
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Introductions to specialist lenders who understand foster income
If you’d like to compare your options and rates or speak to a broker who can help with a foster carer mortgage, you can get started here.
FAQs
Yes. Lenders who understand foster income can use documents such as remittance slips, annual statements, and letters from your agency to verify your income. You don’t need traditional payslips to apply.