Getting a mortgage as a funded PhD student

car503

Hi, hoping for some help as I can't seem to find advice on getting a mortgage as a student.

In a few months I will start a PhD in London on a tax-free stipend of £22k. In terms of take-home pay that's more than my current salary of £28k.

Would I be better off trying to secure a mortgage offer now, while I have a normal salary, or are mortgage lenders happy to deal with students on a stipend?

I'll be new to London so would prefer to rent for the first year, before I decide which area I'd like to buy in, but worried that I will have problems getting a mortgage once I'm no longer 'employed'.

Thanks!

jane2002

Hi,

I am also a PhD student receiving a stipend and just applied for a mortgage with Natwest today. They didn't stress any problems with this as an income but I have not yet been accepted so will see how it goes in the next couple of days! After searching around (seeing numerous mortgage advisors) it seems that Natwest are the only lender who will even consider a PhD stipend..so fingers crossed!

I think you will get a lot more choice applying for a mortgage whilst in your current job but at least there are options out there for students!

geekyisgood

Nationwide said they wouldn't take my tax-free studentship (£16.6k) into account. LloydsTSB said they'd take into account 60% of it.

My partner phoned NatWest a couple of weeks ago and they said it would be fine, but when I phoned this morning they would only consider it if I had a guaranteed job offer for when my PhD finished. This has left me somewhat confused!