Becoming a foster carer is rewarding, but it can add mortgage complexity. This is mainly because foster income does not always fit neatly within standard lending criteria. In this guide we explain how mortgages for foster carers work, the challenges you may face, and how lenders assess affordability.
Are there specialist mortgages for foster carers?
Although there is no dedicated foster carer mortgage, there are nationwide lenders that offer mortgages tailored to foster carers.
These mortgages are usually more flexible to reflect the distinct income structure of foster carers, where payments often come from local authorities or agencies rather than standard employers.
Mortgage challenges you might face as a foster carer
The key challenges for foster carers seeking a mortgage include:
Treatment of income
Some lenders still do not treat fostering allowances as qualifying income for affordability (or they only accept a portion of it).
As a result, they may rely only on more common income types, which can leave you with a smaller pool of lenders.
Documents and evidence
Because fostering income is often paid by local authorities or agencies, and may be handled differently for tax by HMRC (due to qualifying care relief), confirming your income can fall outside the systems used by many high street banks and lenders.
Most mainstream lenders will ask for very detailed and specific proof of any past, current, or future fostering.
Require expert guidance
Specialist mortgage brokers can present your full income picture correctly, using alternative evidence such as fostering statements, tax records, or confirmation letters from your agency.
While some lenders find foster income hard to assess, there are specialist lenders who work with foster carers regularly, and a broker can introduce you to them.
Getting a mortgage as a foster carer
The process for foster carer mortgages mirrors 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 via brokers who can verify your fostering history and income.
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Provide evidence of your fostering payments: This may 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 look for at least 12 to 24 months of consistent fostering income and a clear likelihood of future income to show 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, which can increase how much you can borrow.
Affordability for foster carer mortgages
When assessing affordability for a foster carer mortgage, the crucial point is how lenders treat your fostering income. Some lenders will include 100% of your fostering allowance, while others may take only a portion—typically 50% to 80%—to reflect 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 most effective way to increase your borrowing capacity is to provide all relevant documents and work with a broker who can introduce you to the most flexible lender.
UK mortgage lenders for foster carers
Here are a few examples of well-known UK lenders that may be open to mortgages for foster carers:
Virgin Money: For foster carers, Virgin treats your income as self-employed. You will need at least 2 years of records, and you must list anyone living with you in foster care as a dependant on the application.
Accord Mortgages: One of the few lenders that will include 100% of your foster income in affordability calculations. You will need to supply evidence such as bank statements and a letter from your fostering agency or local authority confirming the children in your care, and you must also meet Accord’s usual self-employed criteria.
Nationwide: Nationwide treats foster income as self-employed income. You will need a letter from your agency confirming the total income paid over the last 2 years and stating that the most recent year’s figure is expected to continue at the same level for the foreseeable future.
If you want to review all realistic lending options for a foster carer mortgage, it is best to speak with an experienced broker who can introduce you to the most suitable lender for your needs.
Frequently Asked Questions
Yes. Lenders that understand foster income can verify it using documents such as remittance slips, annual statements, and letters from your agency. You do not need traditional payslips to apply.