Hello,

I realise there's already a few posts on the site regarding getting a mortgage on a PhD wage, but most of these are at least a few months old and with all the financial turmoil at the minute I don’t know if lenders have become a lot stricter about lending.

I was wondering if anyone has recently tried to get a mortgage with a PhD stipend? And if so which lenders accept this as a ‘normal salary’? I hope to begin a PhD in a couple of months, however the thought of doing a PhD and having to rent for another 3 years would drive me insane.

If anyone could other any advice regarding the issue that would be great.

Cheers

No 'informed' advice, but I would imagine that is going to be a really tough ask at present.

I can't get one on mine, they won't even consider it, and that's with my partner's full salary, to be honest I wouldn't get your hopes up especially not at the moment! We are going to be renting for a long time yet..

Hi, my experience is a bit out of date as I got my mortgage in Dec 06, but that was on my stipend and my boyfriend's salary. As long as I had written proof of a guaranteed income for a fixed period of time from the university or research council, the mortgage company were happy to treat it like a fixed contract in a normal job.
As you say, it may be different now with all that's going on with mortgage companies, but it must be worth a chat with a mortgage advisor.

If you have looked at the other posts you will see the trials and tribulations I had trying to get a mortgage. I would say it is even more difficult now. One thing I would say is get it in writing that your stipend will be accepted as salary before you do anything else or pay out any money whatsoever. We went with Nationwide who said yes that would be OK, we sent money, got solicitors, sent documents etc etc only to be told about three months down the line that they never accept stipends. we actually made a complaint and were given a small amount of compensation for all the hassle we had. Eventually we went with Godiva Mortgages which is part of the Coventry. It does depend how much deposit you have - if you have 10% it will be easier. I think Lloyds will accept that. But I warn you, if you think doing a PhD is stressful, be prepared for much worse. The irony of my situation is that my hubby and I decided the new house and new start wasn't working and now we are getting divorced!!

as with AmyP I got mine in Jan 06 so may be out of date

We tried going to the banks direct but it got a bit frustrating
We then used an independant financial advisor (IFA) who sourced a bank for us, we ended up using Halifax/bank of scotland/Halifax

We did need it in writing that I had a salary etc

In addition I had a large deposit (about 40%) and a partner with a job so I presume that makes a difference too

But as is illustrated by pamw you really really need to make sure they accept PhD stipends first - don't try to hide it as it will only end up causing issues later on

Best advice particularly with the current mortgage climate is to speak to an IFA

good luck

S

I would agree that getting an Independent Financial Advisor is paramount or you will spend ages checking with lenders whether they will accept the stipend. Let someone else do the work. Also make sure they do not charge a fee. You can find advisors who make their money from the lender so they are more likely to work harder for you as they won't make any money unless they find you a mortgage.