Mortgage Help - PhD Graduate and Fixed term contract

Carla_A

Hi

I am desperately seeking any advice in regards to getting a mortgage. I have had an offer accepted on a property but I am having great difficulty in obtaining a mortgage due to my employment.

I am in the process of finishing my Phd (for which I was received a stipend for 3 years) and I recently (March 2016) took up a position on a 2 year fixed term contract at another University. My credit rating is perfect and salary is more than adequate, the issue appears to be with my employment. Many banks are not regarding a PhD as previous employment and as I have only been in my current role for 2 and a bit months they are saying I need at least a year in my current role.

I have went through Halifax and my advisor has raised numerous appeals since she reasons that the PhD was training for my current role so should be taken into account. However all appeals have been rejected.

I am at a complete loss of where to go now. If any one has found themselves in a similar position it would be great to hear, any advice most welcome

Thanks

csgohan4

Perhaps a broker would have been a prudent first port of call as your situation is special. Bank advisors go by what their computer says not what is reality. I.E they know nothing.

Anna_PhD

Hi Carla A. I'm in an almost identical position. What happened in the end?

Caz3121

I doubt you will get a response. Carla posted back in May last year and has not been back since

ACG

Anna, if you find a broker you stand a better chance than a bank directly. The devil with this is in the detail. I think for Carla she could have found a lender but identical and almost identical could be the difference in getting a mortgage and having to wait.

Stipend is not really an income lenders will accept in the main so it is never the easiest to place.

Voyager2002

The original post was from someone who had a job with an adequate salary, but had not been in the job for long enough. Most mortgage lenders require borrowers to have a permanent contract, or to have been in their job for a reasonable amount of time before applying. Nationwide is generally less fussy about this than most.

Anna_PhD

Thought I should update this post with what finally happened to me.

My situation was I was finishing my PhD (stipend finishing in October) and had just started at research assistant position (18 month contract). Me and my partner, in academia too, (1 year 8 months into a 3 year contract) with sufficient salaries for what we wanted to borrow.

We got a mortgage in principle (MIP) from Halifax direct through the branch and one through HSBC online before looking. Once we got offer accepted on house accepted, we went to HSBC to be told we should we shouldn't have a MIP in the first place and to try a broker. We rang london and country and we were told we would not get a mortgage with our correct situation (Me not on a contract long enough and my partner on a work visa).

We also went back to Halifax directly and they had no issues getting a mortgage and our adviser just had to explain the situation to the underwriters. We got the mortgage and moved in last week.

In summary, if you live in a university city go to the local branch. If we had listen broker we won't have a house now!

csgohan4

bare in mind London And Country are a free service and their business model is quantity not quality. Hence your case may have been too much trouble, I presume they have access to Halifax, hence their failure as a broker not a profession


Now there are good brokers and bad brokers just like lenders.
A good one would have linked your circumstances to the right lender.


I wonder if your lender is the most competitive at the time ? Remember Loyalty doesn't pay and going to Halifax direct doesn't always suit everyone. Going to one branch direct is not money saving, always check and compare rates and criteria where possible.


I wouldn't have got a mortgage without my broker with myself self employed, put it that way. No 2 hour interview for me, in fact I didn't need to speak to the bank, just emailed my broker bank statements and p60 equivalents.




For some who are working full time, a 2 hour interview for example may not be possible, taking time out to speak to a lender who may or may not accept you, plus all the admin work that comes with that and keep going into the branch e.t.c