Finding a mortgage that accepts PhDs as an income

littlepolarbear

Thanks to everyones responses.

We have spoken to 4 brokers in total, all of whom are independent, and they have all come back with the same thing. That Halifax will accept my stipend as an income but will only take 60% of it into account and TSB who will take 40-50% depending on the individual circumstances. I will look into L&C and see what they can offer.

Thanks for pointing out Cambridge Building Society, I have called them and they do offer mortgages and take 100% of my stipend into account, however they require a 20% deposit and we currently have around a 15% deposit. Still might be worth looking at though.

We have an appointment with Natwest tomorrow morning so we shall see what they come back with.

I think what has surprised me the most is the independent brokers have not suggested either Natwest or Cambridge building society before. Shows you really have to look around yourself and try to find the best options. It is very frustrating how difficult getting a mortgage is when your a PhD student.

Any more/other suggestions of where might be able to offer a mortgage would be most appreciated.

Rosemary7391

littlepolarbear wrote: »

Thanks to everyones responses.

We have spoken to 4 brokers in total, all of whom are independent, and they have all come back with the same thing. That Halifax will accept my stipend as an income but will only take 60% of it into account and TSB who will take 40-50% depending on the individual circumstances. I will look into L&C and see what they can offer.

Halifax definitely accepted 100% of mine only 18 months ago - I hope it hasn't changed as I'll be thoroughly screwed at remortgage time otherwise! I had a high deposit (31%) but a 40 year mortgage of around 4.5 times my income so they must've accepted all of it. I can't find any reference to this 60% figure on the Halifax website.

Are the brokers perhaps assuming you have to pay tuition fees or something out of your stipend? I used a mortgage broker from sequence homes when I took out my mortgage and I recall they had a list of half a dozen or so who would accept it. Might be worth asking them!

littlepolarbear

I just wanted to say thank you to everyone for their advise and help. We have had a meeting with Natwest and they have confirmed with their underwriters that they can offer us a mortgage and will take into account 100% of my stipend.

(Tip: when filling out the form do it as Net month paid as this takes into account the fact a stipend is not taxed).

Now just have to find a house..... at least we know how much we can afford now.

Thanks again