how can I get a mortgage without proof of income?

sidewinder78

hi all, sorry for the repetitive question!

I have £40,000 for a deposit for a house worth £130,000.

However, I'm a postgraduate student with a fixed grant of £17,000 (tax free) for the next 14 months. I've also had a regular part time job for the last two years which has brought in an additional £8,000 or so - so my total income is approximately £25,000, mostly tax free, but because I'm a student I have clearly no proof of income or job contract.

How can I get a mortgage?

I would be paying much less for a mortgage than I have been paying rent (for four years!) and I'm desperate to get in the market before house prices go up again and I can't afford anything.

Many thanks for help!

nw_man

The short answer is, you will struggle.

Self cert is not exactly in vogue these days.

sidewinder78

I've been paying rent actually for... 13 years. It's just the last four that I know I could be paying a mortgage in the same house for roughly half.

Anyway, I'm wondering how I go about getting a "no proof of income" mortgage, or if it would be possible to get a mortgage with a guarantor?

Blackpool_Saver

I wish you the very best of luck, contact an ifa or a mortgage specialist, be prepared to pay high interest as you will be considered high risk.

sidewinder78

thanks nw_man. I know I'll struggle, but is it possible? What would improve my chances of success?

sidewinder78

thanks blackpool_saver. If I get a high interest mortgage now, will I be able to switch to something more reasonable in a few years?

thriftymomma

sidewinder78 wrote: »

thanks blackpool_saver. If I get a high interest mortgage now, will I be able to switch to something more reasonable in a few years?

In theory, yes. You need to find out how log you will be tied in to deal, early redemption fees etc. Broker is the way to go I reckon.

_Andy_

You state you have a grant and a regular part time job.
Why would there be no proof of income?
I.e. you must have payslips for the job and paperwork for the grant.

Voyager2002

_Andy_ wrote: »

You state you have a grant and a regular part time job.
Why would there be no proof of income?
I.e. you must have payslips for the job and paperwork for the grant.

Agreed.

The OP needs to find a lender who understands that a grant (not a loan) is indeed income.

Pdocherty

Hi Sidewinder,

I have recently had an offer accepted on a property and am also a PG student. Like you, I initially had a little difficulty finding a lender who would accept my grant as income. In the end though, Clydesdale Bank, RBS and Britannia all were happy to accept it (all were referred to underwriters but eventually approved). Don't you get payslips from your university?

Hope you get it sorted!

Jacka87

It would seem to be that all you need to do is show whatever form of paperwork you have that proves your grant, ie payslips or whatever.

The only thing tho that nobody has mentioned, im not completly sure its relevant but could be crucial, is the fact that the post grad is fairly short term.

I presume you will look to spread the mortgage over 25 yrs but is a postgrad not normally only a yr or 2? Some mortgage providers might worry that you dont have a method of paying the mortgage one you complete the post grad. I appreciate that you should be able to get a job with such a high level of qualification but just thought it should be noted that lenders, who might struggle to accept that a grant is actually payment may also worry about that as well.


Good luck, hope you get it sorted though as it does seem perfectly sensible for you to buy a home instead of renting.