Hi - I'm a full time PhD student and I've been trying to find a mortgage with my partner (who is not a PhD student). Most banks don't seem to accept PhD as an occupation - does anyone have any advice about getting a mortgage while being a full time PhD student? Thanks :)

Hi Mes

I applied for a mortgage successfully along with my partner in 2012 - albeit as a part-time PhD student.

The difficulty you'll have will be getting around lenders' hesitancy re. short-term contracts (this is how they'll probably view a funded studentship or other work such as casual teaching assistantships). If you can present income in the form of an ongoing contract you'll be in a much stronger position.

We succeeded in the end by going through a broker. They charged a small fee, but were more than worth it. My advice would be to try something similar - they'll be better placed to take stock of your situation and present it to banks. Ours didn't actually charge anything until they'd found us a mortgage.

Hope that helps a bit - it's not impossible, but it may be tricky.

Mark

We are on the same boat. While the banks appreciate 'prospects's of getting a job upon completion of your Ph.D. is high, they do not consider it when calculating your earnings. According to my bank. even if one was doing a funded Ph.D., it does not count as an actual earning/income.

I was very lucky in getting my mortgage last year, but they changed the rules just after that so a PhD stipend doesn't count as a wage. If your partner works then you may be able to get a mortgage together but you would count as a dependant and the amount you can borrow would be affected.

I am not sure how much your university pays for PhD stipend but in Canada, they usually pay you way below the poverty line (even before taxes) so no bank even would consider PhD student as a potential buyer!

I was very lucky, I had a reasonable deposit and house prices are cheap at the moment in the UK. Even more fortunate stipends are tax free so while its not a huge amount it's enough.

We actually had the experience that my PhD stipend for 3 years and my partner's basic retail wage were fine. As our mortgage adviser at our bank said, what does a permanent job mean these days anyway? She saw it as a guaranteed income for three years. We were at the entry level of the housing market, and were not borrowing a lot - certainly we were not over extending ourselves and had been paying rent at the same level our mortgage would be which I am sure helped! As well as it being before the global financial crisis. But the advice to go to a broker is good - they know what banks might be more open to possibilities. Good luck!

This was actually something that I was considering posting about as I wondered how others had done this. I am starting my funded PhD in September but I already have a mortgage. We're currently on a fixed term but were hoping to move banks and I'm unsure they will accept my stipend as income. Obviously, it's not too bad as we could always stay where we are.

However, when I did get my mortgage in the first place, my husband was working full time. I was working but one of my jobs was a temporary contract covering maternity leave and the other was a permanent contract but I had only been there a month. We managed to get a mortgage quite easily despite this because we also used a broker so I think it might be worth going down that route.

Hope you get sorted.

p.s I think it's ridiculous that banks don't accept stipends as it is just a salary that's not taxed in my view!

No, it is not. It is actually completely reasonable. A PhD is a temporary position and there is no security at all. Nobody can tell if you will find a job afterwards and a lot of post docs search for quite a while or struggle to find any job (of course depending on the subject). I am not a UK citizen but I guess it is like that everywhere. No bank in Germany would lend you money if you are on a temporary contract, unless your partner is on a permanent position and earns a substantial part of your income.

Same thing here in Canada. If they start lending money to PhD students, then they also should do it to masters and bachelors based on the fact that their one year after graduation job finding prospects and earning income will be much higher than someone with with a PhD....

Still quite ridiculous though isn't it, I could be sacked from my job the next week after getting my mortgage for all the bank knows.

Sure you could. You could also escape somewhere with the money and never pay anything back. There is no absolute security. All the bank knows is that a PhD student will be definitely sacked after a fixed amount of time. If you find a job afterwards and if that job will provide you with a similar or higher salary is completely hypothetical. Moreover, majority of PhD students enters the real job market after a PhD for the first time and search longer for an entry level job compared to people who already worked for a while and had to find something new. It is maybe not nice, but I can understand the banks in that case.

I am btw surprised that this seems to be a topic of concern for many PhD students. Aren't you afraid of such a obligation at this point of your career not knowing where your next job will be ?

I still think it's the same risk as in any field with any job. Chances are any job you get once you finish your PhD is going to pay more - it's not hard to find a job paying £18k a year, which is the stipend equivalent considering tax. Furthermore, I can earn minimum wage and easily cover my mortgage so it's not something I'm concerned about. I believe I can get any old random job if needs be.

That is true.

Just to be clear, we are talking about an amount of money to buy an apartment or a house aren't we? I find it really strange that a bank would even consider to lend you so much money with a salary like that. I think that is impossible in Germany. I honestly never heard of a PhD student who bought a/an house/apartment and somehow don't understand why someone would consider to do that, as you are probably moving after your PhD (and maybe quite far, depending on the job market). Am I getting something wrong?

I'm afraid for all those who disagree with me then we'll have to agree to disagree.

I am currently on a permanent contract with an organisation who rely on one large commission with the health service every year. I might have a permanent contract but each year our customer might choose not to renew our contract and the whole place would close. My previous work have also all been on fixed term contracts. I work in the voluntary and community sector and I love it but unfortunately short/fixed term/temporary contracts are all most offer.

In September, I start my PhD for four years - it will be longest job security I've had in my working career.

My salary for my PhD will be just under £14k not taxed. Per month I will only lose £100-150 and my current wage is £21k taxed. With the saving I make for other reasons I will actually be better off and more secure during my PhD than I have at any other time.

I realise this might not be the same for everyone but it is possible. Mortgage lenders take individual circumstances into consideration and now look at things such as your monthly outgoings (not just for bills but for leisure too) so if you're careful with your money, you have a better chance. There are also schemes like help to buy which can help depending on your situation (it did for me and my husband). So yes, I think it's ridiculous that banks don't accept stipends as it is just a salary that's not taxed!