PhD mortgages

riley_dn2

Hi,
My dh is currently trying to get a mortgage as a first time buyer. He is buying a new build so is using the company mortgage adviser as we feel he will have the drive to get a mortgage if there is one for us.
He is a PhD student and recieves payslips from the university, earning £1600 a month. Do we need to tell the adviser he is doing a PhD or can we go on the assumption that he is a reseacher? He [EMAIL="doesn@t"]doesn't[/EMAIL] pay tax and the payslip states maintainence grant.

poppy10_2

riley_dn2 wrote: »

He is buying a new build so is using the company mortgage adviser as we feel he will have the drive to get a mortgage if there is one for us.

This is a very bad idea, you should generally never use the property developer's mortgage advisor - they inevitably have a conflict of interest.

Anyway, whichever advisor you use, you should be honest with them, no point in telling them your dh is employed as a researcher when he is just earning a grant as a phd student - any mortgage offer based on incorrect information would be invalid and could be withdrawn at any time.

riley_dn2

Thanks for your reply, we have decided that honesty is the best policy although we're sure now that it will be an instant "no". However, we did think that using the developers advisor may work in our favour as he would do anything in his power to secure the mortgage! Plus we are also using the shared equity scheme and i'm quite sure you have to use the devolper on site for that????????? He does have secured employment at the end of the phd, however can't supply evidence of this as it will be abroad and we have tried to use my parents as guarantors, but they are not keen! We just want a house!!!

poppy10_2

The developer's mortgage broker has no more incentive to get you a mortgage than an independent broker - they both get paid a commission. The difference is the developer's broker is more likely to get you a mortgage that suits his employer, the developer, rather than your needs, and you could end up paying much more than you need to. Plus the developer's broker might be tied to only one bank/lender whereas an independent mortgage broker could access deals from the whole of the market.
The fact that it is a shared equity scheme doesn't mean that you have to use the developer's broker - if anything it is even more reason why you should go to an independent whole-of-market broker who will be able to find the right mortgage for you from amongst the limited options.

On the other point, it is unlikely that your dh's future employment will be taken into account, the fact is at the moment he is a full time student and only gets a maintenance grant. Is your income sufficient to carre the mortgage on your own?

riley_dn2

Dh is applying for mortgage on his own, I only work 8 hours a week so would not even qualify for 50p! thanks for saying about different advisors though. the guy they use is actually the best in the town, but through them he can only arrange a mortgage through nationwide or halifax. So maybe if we use him independantly he would be of better help? or will he still sway towards those lenders with it being for developer? We just feel totally clueless so appreciate your help!

holly_hobby

A grant is not classed as earned income - therefore in my experience & opinion in relation to underwriting, its a no go. (that's of course if the broker & your son actually declare it as a grant ... !!)

But I would love to be proven wrong for your sons sake.

Word of warning .. as already stated any deviation from the truth, especially in relation to income (amount or source), can have severe consequences for all concerned.

Hope this helps ....

Holly

riley_dn2

Thanks Holly
(although it's my husband, not son!) There are a few of his friends at uni who have got mortgages who recieve a smaller bursary than he does!
Yes I think we were definately clutching at straws when considering bending the truth! I'm pleased i asked advice before going ahead!

holly_hobby

riley_dn2 wrote: »

Thanks Holly
(although it's my husband, not son!) There are a few of his friends at uni who have got mortgages who recieve a smaller bursary than he does!
Yes I think we were definately clutching at straws when considering bending the truth! I'm pleased i asked advice before going ahead!

Oops .. sorry ...

Has your Hubby asked his pals who/where/how they got hold of their mge ... ?

Holly

riley_dn2

friends have a nationwide and a hsbc, but we bank with hsbc and they wouldn't even discuss a mortgage with us! I called an independant advisor today, who didn't think it was possible to be paid tax free for research whilst being a graduate and a student! he didn't have a clue! I think this is one of the reasons we considered lying in the first place!

holly_hobby

riley_dn2 wrote: »

friends have a nationwide and a hsbc, but we bank with hsbc and they wouldn't even discuss a mortgage with us! I called an independant advisor today, who didn't think it was possible to be paid tax free for research whilst being a graduate and a student! he didn't have a clue! I think this is one of the reasons we considered lying in the first place!

I suspect NW and HSBC may not have been told the whole picture. As I said in my earlier post, I don't think from my experience that its possible to achieve a mge on a grant (which is classed as non earned income).

Perhaps renting in ths short term may be a better idea .... at this time.

Best of luck ...

Holly