Mortgage with one employed with income, one medical student

Hollye31

I’m looking for some advice/feedback on the possibilities available to us as it’s proving difficult coming to any conclusions ourselves. We are a couple, one employed and entitled to a £110k mortgage, the other is a student.

As one of us is a medical student with no income bar student loan/family contribution, a joint mortgage is out of the question. Is it a possibility with guarantors? So a joint mortgage between us two with the students parents as guarantors for her half?

Other option is for the employed person to get a mortgage in their name, then a declaration of trust with financial interest stating the students contribution to deposit, payments etc. One bank said this meant the student couldn’t live at the house - is this true? Another said they couldn’t contribute to the mortgage payments at all?

Any advice or guidance would be really appreciated!

ACG

What is it you are trying to achieve?

In this industry, it is very difficult to give a general rule of thumb as every lender is different.

You can still do a joint Mortgage even if one applicant has no income/is a student.

Hollye31

The problem is every lender we’ve spoken to so far says we can’t, and that the student counts as a dependent even though they have unofficial income from student loan and family contributions.

We want some clarity on our options - whether a joint mortgage is possible at all (as guarantor mortgage advice online only states for a child and parent situation, not a couple and one persons parents) and whether the advice we’ve been given about a declaration of trust would work on a mortgage in only one name if that person also plans to live in the house and contribute to mortgage repayments.

Thanks

ACG

Student loan is not an income and neither is family contributions, so a lender would not accept them as income. The student is only a dependent if they are not a named applicant, if they are a named applicant they are not a dependent but would affect the overall affordability of the application but it might be viewed differently to a normal dependent.

Hollye31

I completely understand that a student loan is not seen as income, however surely it is appreciated when considered financial dependance aka I do not use my partners income to live.

We've had quotes of joint mortgages which are half or less of what my partner could get alone, reflecting my lack in official income, but is it possible to boost this if I have guarantors?

If not, the only option I can see for us is getting a mortgage in one of our names ie not the student, with the other having declaration of trust. This means we lose one of our Lifetime ISA benefits, which is not ideal hence asking for further advice

kingstreet

I've just tried one high street lender's calculator.

I input a one applicant, one salary application.
I input a two applicant, one salary application.
I input a one applicant, one dependent, one salary application.

I tried 85% and 90% LTV and the outputs were the same in each case.

Perhaps you need independent broker assistance because I went straight to that lender on experience of what I have observed previously.