First Time Buyer but PhD student!

kate912

Hey everyone,

I'm looking to buy a house with my boyfriend - he has a permanent job, but I'm a PhD student. We've got a good deposit (so can do 75%LTV) but I'm struggling to find a provider who will accept my PhD stipend (not loan!) as income alongside his!

Does anyone have any experience of this situation?

Thankyou!!

Kate

FinAdv

Hi,

Whats the price range for property you are looking for?

Whats your partners annual income and your stipend?

Regards

kate912

Hi - thanks for the feedback.

Looking around the 170K mark; my partner earns 22K salary. My stipend is industry enhanced, so I get 18K tax-free (i.e. my monthly income is £1500). Credit histories are good, no loans or kids or anything else to take into account. Thanks for any info!

shortchanged_2

I think the problem that you have is that you will be classed as a student and not actually in employment, therefore most lenders won't consider you in the calculations.

How long is the course?

Because as far as the lenders are concerned once you've finished your course you may well be unemployed for some time (although hopefully that won't be the case for you).

However there are plenty of other more qualified people on here who I'm sure can give you a more accurate answer than me.

cathy_j87

Hi Kate

I'm in the same position as you - half way through a four year PhD and starting the house hunt with my fiance. My OH is on ~13K/year so considerably less than your BF but we have a mortgage agreement in principle.

If you call yourself a Postgraduate Researcher it may overcome the student problem, but do explain it to them. We always fall into loopholes, wouldn't it be nice if people understood that we weren't just students!

Hope it works out for you!

TEDDYRUKSPIN

cathy_j87 wrote: »

Hi Kate

I'm in the same position as you - half way through a four year PhD and starting the house hunt with my fiance. My OH is on ~13K/year so considerably less than your BF but we have a mortgage agreement in principle.

If you call yourself a Postgraduate Researcher it may overcome the student problem, but do explain it to them. We always fall into loopholes, wouldn't it be nice if people understood that we weren't just students!

Hope it works out for you!

What you have just said is illegal. You are considered as a full-time student. Even if you receive your stipend.


Your stipend will end when you are writing up and so how will you be paying for the mortgage?

At this current moment of time, most lenders have tightened up and you will find it very difficult to get a mortgage at that amount.

Your only main option is to obtain a guarantor (hence, a parent) or walk away and just rent.

cathy_j87

If you read what I said carefully I said to explain the situation.
It's nearly impossible to be "fired" from a PhD so you have a guaranteed income for the duration of it. More than can be said for most jobs these days.

I do however agree that having a guarantor is the main solution.

shortchanged_2

cathy_j87 wrote: »

If you read what I said carefully I said to explain the situation.
It's nearly impossible to be "fired" from a PhD so you have a guaranteed income for the duration of it. More than can be said for most jobs these days.

I do however agree that having a guarantor is the main solution.

But having a guaranteed income and being classed as employed is a totally different thing.
Someone who claims jobseekers allowance can be said to be on a guaranteed income.

ianh_14

I would be interested to hear the outcome of this question, as myself and my girlfriend are in a similar position & looking to purchase our first flat.

I am in full time employment earning £24.5K p/a and she currently has 2 years remaining on her PhD. We also have a good deposit (around 70% LTV) and are looking at properties around £22k.

shortchanged_2

ianh_14 wrote: »

I would be interested to hear the outcome of this question, as myself and my girlfriend are in a similar position & looking to purchase our first flat.

I am in full time employment earning £24.5K p/a and she currently has 2 years remaining on her PhD. We also have a good deposit (around 70% LTV) and are looking at properties around £22k.

Damn, properties are cheap where you live! :rotfl:

ianh_14

shortchanged wrote: »

Damn, properties are cheap where you live! :rotfl:

:embarasse my bad. I meant £220k!