Mortgage for a mature PhD student

pseudonim

I'm hoping that I will soon discover whether I've been successful in getting a PhD studentship of £15K a year.

I'm a bit different to most PhD students in that I'm 55 and I have owned my own home for many years. I've actually recently sold and moved into rented so that I can take up my studies more easily, and the money from the sale is tucked away in a NS&I account.

I would like to buy where I'll be studying, and I'd hope to borrow around £50K in order to get a place that I like and not use up all my savings - LTV would be around 30%. Obviously my age will have an impact on the duration of the loan that would be allowed.

My reading of previous threads suggests that lenders may in the past have been cautious about taking stipend as salary for mortgage purposes, and I suspect the latest changes to lending rules may make that even tighter.

So, I have two questions:

1) Is there any chance of finding a lender in this situation?

2) Would it be best to go through a mortgage broker rather than try to find a lender myself?

ethank

Most lenders will not consider that kind of income for mortgage purposes.

kingstreet

You'll get your stipend taken into account by at least one lender I can think of, but if you're already 55, you may have affordability issues due to the limited nature of the mortgage term open to you, 11 years, without evidence of income past state pension age.

Assuming no credit commitments, or other expenditure which has to be factored-in, max loan is £40,610.

I'd say a broker will be essential in establishing what lender options you have.

agrinnall

Thanks kingstreet, that's pretty much what I though, and if I'd be able to get £40K that would probably be enough.

kingstreet

agrinnall wrote: »

Thanks kingstreet, that's pretty much what I though, and if I'd be able to get £40K that would probably be enough.

First rule of a pseudonym.

Don't forget to log in and out using the correct account.

agrinnall

kingstreet wrote: »

First rule of a pseudonym.

Don't forget to log in and out using the correct account.

Yes, just realised , and now I can't even correct it as you've quoted me - oh well, hopefully everybody will have forgotten about this thread if I ever use the pseudonym again!