In a society that in many ways seems to be designed for two, buying a home alone has become an increasingly frequent decision. Although the risk may seem higher, and in fact banks usually consider it that way, taking this step is also possible alone, especially if you take into account a series of tips.
Separated or divorced people, “singles” or even those who live as a couple, but decide to carry out the operation alone are the most common profiles. Buying a home does not have to be a matter of two, in the same way that the number of people living alone in Spain is increasing. In 2019 the figure was 9% higher than in 2013, according to the Continuous Household Survey published by the National Institute of Statistics (INE) last April. If only those under 65 are taken into account, the increase in those six years was 7%.
Despite the fact that the responsibility of facing only one mortgage is greater than if it is assumed as a couple, Buying a home alone also has a number of advantages. To begin with, decisions such as the location or characteristics of the home, whether to buy it new or reform, or how to reform it, will depend solely on oneself.
In any case, even if the decisions are made only by one person, it is worth asking family or friends for an objective opinion of both the home you want to buy and the conditions of the loan.
Assess budget and priorities
Some tips should be considered before making such an important decision. Some of the recommendations are just as valid as if the purchase is made as a couple. In fact, the first is to be aware of both the budget that can be invested and the priorities.
The financial risk assumed when purchasing a home alone is greater than in a company, in part because Faced with possible adverse work circumstances, the only coverage available is that of your own savings. This circumstance requires analyzing if possible in more detail the income that can be had, the expenses and the budget that can be allocated to the purchase of the house.
In any case, the monthly mortgage payment must not exceed 35% of income; a percentage that the bank will also value for granting the mortgage.
For some buyers, a one-bedroom, 60-square-meter home will suffice; Others will prefer to invest a greater amount in a larger property or with more rooms in the face of possible future scenarios, such as having to telecommute or start a family at some point. Whatever your priorities, you need to be mindful of your options, as this will save time on both a home search and a mortgage.
Apply for a solo mortgage
A priori, obtaining a mortgage from the bank may seem like the main obstacle to buying a home alone. But more important than the number of applicants is the financial situation and how they know how to accredit to the bank.
What is certain is that two good salaries add up to more than one, and that between two it should be easier to save the amount necessary to face 20% of the sale price that the bank will not finance and 10% or 15% of expenses associated with the signing of the mortgage. Saving is another factor that must be taken care of when negotiating with the bank, because for the entity it is a weighty circumstance when evaluating the concession.
When dividing the responsibility of the mortgage in two people, it is usual for the bank to consider that there is a lower financial risk when there are two applicants instead of one. In addition, there is less chance that due to labor difficulties, no income will enter the family unit, which reduces the chances of delinquency.
In this context, it is not uncommon for the bank to request a guarantor to approve the mortgage. Conversely, better working and financial conditions (which a solo person can also prove) will have repercussions not only on greater options for obtaining the loan, but also on the greater possibility of reaching an agreement with the bank in the negotiation that ensures better conditions.