FTB: Mortgages & PHDs

BeardedWonder

Looking for some pointers on how to get a mortgage with a PHD. I'm working FT, partner is studying. Here's the scenario:

- I'm on £19.5k (secure job, touch wood )
- Partner's stiped is £13k (tax free) and works one day p/w, abother £6k tax free.
- Looking to buy end of this year
- We're saving for a deposist, aim to have £10k - £18k
- We'll be looking for a mortgage of about £90 - £100k, representing 90% of house value.
- Good credit ratings, £6k of student loans but no other debts / loans.

How receptive will lenders likely to be to this? I know some don't recognise PHD stipends as income, even though it's guaranteed for 3 years.

Are there any lenders more favourable then others to lending to PHD students? Or should we just go to a mortgage broker and let them do the work?

Thanks

Meeper

Your final suggestion is probably the way to go.

BeardedWonder

Before we do that any idea as to how successfull we would be?

Meeper

Not really. It's the kind of thing that an adviser would need to make some calls to lenders about.

BeardedWonder

Fair enough, thanks for the response.

OCD

How far into his course is he?

Have you made any provision for when his course finishes or any period spent writing up?

BeardedWonder

OCD wrote: »

How far into his course is he?

Have you made any provision for when his course finishes or any period spent writing up?

He?! No, it's my lovely lady who's studying!

Her fist year so at least another 2 1/2 years before finished. She's working 1 day a week in her old job at the university of Manchester which is related to her PHD. She was working as a Research Associate (>£30k p/a) and once qualified as a Dr should be able to get a job at least at that level - presuming the HE sector hasn't completely collapsed by then.

Although early days she's treating the PHD like a FT job and aiming to complete within 3 years.

Too early to say at this stage what she'll do after; depends what sort of jobs there are in academia mainly.

OCD

BeardedWonder wrote: »

He?! No, it's my lovely lady who's studying!

Her fist year so at least another 2 1/2 years before finished. She's working 1 day a week in her old job at the university of Manchester which is related to her PHD.

Too early to say at this stage what she'll do after; depends what sort of jobs there are in academia mainly.

Yes - she sorry.

I would try and factor in a period to finish. During this time you cannot rely on any income from her.

Which field does she work in?

Alot of research funding has been reduced recently.

I don't want to put a downer on the thread, but the tail end of a PhD is extremely taxing in nearly every way. You do not want to add financial worries to this time and risk not being able to pay a mortgage.

If you do want to buy now, I advise you to consider your own salary only. Alternatively, leave it until you partner has secured a permanent job after her studies.

OCD

PhD's invariably take longer to complete than expected. I know people who have taken a few months over three years to complete, others closer to 4 years. A year is a long time to go without earning.

BeardedWonder

OCD wrote: »

PhD's invariably take longer to complete than expected. I know people who have taken a few months over three years to complete, others closer to 4 years. A year is a long time to go without earning.

True, we know plenty of people who have taken over 3 years but invariably they're people who didn't do much work in the first year, or even 2nd.

That's why my gf is treating it as 9-5 role and made very good progress so far.

Her work at the uni means that (all going well) she'll have at least a £6k p/a income to cover any overrun. She might be able to do more hours there if needed as well.

BeardedWonder

Appreciate what you say about financial worries but we need to live somewhere; if we don't buy we're still renting - monthly outgoings will be the same, just we want to be renting "from the bank" not a landlord...