PhD Student + Partner on road to a mortgage in London...

laurathree

Hi all,

I posted about this many months ago, and thanks to all for the advice - things have become more real than theoretical now!

I've recently started a PhD, and am getting quarterly installments of £4,000ish, £1,000 of which I'm putting into savings as soon as I get it, and then anything left over at the end of the quarter. My partner and I (he's currently employed on a permanent contract of £21,000) could reach up to a deposit of £35,000 (though £30,000 would be more comfortable - we're trying to remain flexible for London). We're currently preparing ourselves financially - making sure we're on electoral roles and our addresses are all up to date, etc.

I'm going to need a broker to talk to at some point - we're based in West London. Has anyone had any experience of telephone brokers or face-to-face brokers (whole of market) that they could recommend? I think as my employment status is unconventional, the broker + method will be the best approach.

Also, I have been encouraged by the couple of people at my University who have managed to get mortgages in similar positions - although they all said some banks won't want to know, and it may take a bit of hunting to find one who is prepared to understand how a tax-free PhD scholarship of £16,000 a year actually works (it's the equivalent of about a £20,000 pre-tax salary). Has anyone had any experience with this, or do you have any banks you would recommend?

Thanks for any advice you can offer!

Laura

Annisele

Bumping (since I suggested she start a new thread, but that hasn't actually helped yet).

laurathree

The wall of silence about this situation is a worry in itself!

Any ideas anyone?

Leon_W

IMO it's just not possible.

I do not know one lender who will take your "income" into account.

Happyface82

I'm in a similar situation though maybe slightly better as I'm getting paid on a monthly basis. I have spoken to 2 different brokers as we have found the place we want to get and both said only Natwest will accept a scholarship as an income.

In the end, for various reasons we went straight to Natwest and we just submitted our application today. They actually put me down as employed. To them its either employed or unemployed. They don't care where you get your money from. Not sure if we are going to be successful but as far as I know its the only option!

Good luck!

Let_Us_See

I agree with previouse post that it would be extremely unlikely for any lender to accept your current PhD "income."

However, if you have friends at uni who have already been accepted in the same circumstances, why not simply ask the name of the lender?

holly_hobby

There are lenders whom accept bursary income - a mge broker will assist.

The confusion with lenders, is that they will see the bursary as provided by the Uni exlcusively for study fees i.e tution, books etc (ie - in essence its a student grant)- when in reality it is actually provided to support the cost of living whilst you complete your PhD. To which it may assist your case if you can obtain confirmation of this from your Uni, regarding the basis and purpose of the bursary as noted above.

Now obviously, the bursary is time bound (has a defined end date), so being able to explain how your income won't decline post its cessation (end date), such as you are gted a job with the Uni, or whomever, or what your employment plans are after this date, may also assist with the UWs view of this under responsible lending (although they may not go so far as to ask this - but being prepared is the key).

I do know Natwest (direct and intermediary) and HSBC (direct business only) are 2 lenders previously happy to consider such applications, whether this has recently changed I don't know, but perhaps worth a call or 2 ?

Additionally, sounds too simple I know, but as suggested, ask your colleagues whom are also bursary based, whom they sourced their mge with - possibly the 2 noted above, but you never know they could come up with a new contender !

Additionally, pop into banks that are located around and on the Uni campus i.e located there to deliberately attract student business, as one would imagine they would be au fait and had experience with the academic set up of Uni's inc busarys etc .... given that the Uni population appears to be their target audience in that area.

Hope this helps with food for thought ....

Good luck

Holly x

holly_hobby

Laura,

As I said NATWEST and HSBC do/did consider and accept bursary income, with a success story posted today ...

Happyface82 wrote: »

Just thought I would share since there are a lot of people on here with the impression that PhD bursaries don't count for a mortgage!

We applied last Wednesday through Natwest (apparently the only bank that accepts bursaries) and were told yesterday that our case is with an underwriter. We just got a call today and they told us that the mortgage has been approved subject to valuation which will take place until Friday so by next Monday we should have the final outcome.

Can I also add, if we do get an outcome by next Monday that's only 10 days since application. Very very quick!

Hope this helps (if you're not already in the application process !)

Holly

Happyface82

I don't think HSBC consider bursaries any more. 2 independent brokers told us that only NATWEST accepts them. We called HSBC first as we bank with them and they said no straight away. But its always worth checking I guess!

holly_hobby

HSBC don't accept intermediary business full stop - so little gain for an adviser to get involved in recommending them (although not all feel that way and will mention them if the best suited for reqs), so it was alwasys a direct app situ (as in my orig post) - as I said I wasn't sure if either NW or HSBC were still in the market for this, which unfortunately it appears from your enq that HSBC have currently withdrawn (although they do have a super cautious mandate in any event).

Anyway, very well done for your succesful app, hopefully it will give our OP some hope !

Holly

soxman

Hi,
I'm in the same position, so glad I found this thread! Just wondered if anyone could tell me how NatWest treated the bursary to calculate how much they would lend? I've read from older forums that some lenders would take a percentage of the bursary before multiplying it up e.g. if I'm on a bursary of 18000, will they offer 4*18000, or 60%*4*18000? Hope that makes sense!
Thanks!