Mortgages for PhD Students, with a Stipend income
Mortgages for PhD Students, with a Stipend income
Your home may be repossessed if you do not keep up repayments on your mortgage.
All information was accurate at the time of publication.
26th April 2024
We've been helping PhD students navigate the mortgage maze for years! We noticed many mortgage advisors weren't familiar with stipends (who knew, right?). That's why we now help people with stipend income apply for mortgages every month.
If you're a PhD student (or your partner is) and got shut down trying to get a mortgage because of your stipend, don't worry! We're here to help. We'll walk you through some questions to show you what's possible.
Can I get a mortgage with a stipend income?
Absolutely! Getting a mortgage with a stipend is definitely possible. While some banks might be hesitant, there are plenty out there, including some big names and smaller building societies, that view stipends as a steady income source. They'll consider 100% of your stipend when looking at your application.
The main things lenders want to see are that your already receiving your stipend and that it will continue for a while. If you're nearing the end of your PhD, having a job lined up for after graduation will be a big plus!
Click here to start editing your text. The 'text element' box will pop up and allow you to change your wording along with your font style, size and colour. You can also change the margins and borders for this text box.When assessing my stipend income, what will they use?
Figuring out your income for a mortgage can be tricky, especially with a stipend! We recently helped a PhD student who, like many, had tuition fees, a research stipend, a grant, and some teaching income. They wanted to know which of these would count towards getting a mortgage.
Here's the good news: lenders typically consider your stipend and part-time teaching income when calculating your mortgage eligibility. Tuition fees and research grants, unfortunately, don't usually count.
Teaching is a common income source for PhD students, and the good news is it can help with your mortgage application! Most lenders see part-time teaching as a zero-hours contract, so you'll typically need to show at least 12 months of consistent teaching income. They'll then base their calculations on your most recent year's pay.
If your teaching position is more permanent, like a regular part-time role, they'll just ask for your contract and the latest few payslips (usually 3 months).
Can I use my stipend income to support me buying a shared-ownership property?
Thinking about buying a shared-ownership property with your stipend income? That's great! While some lenders might be picky about stipend income for mortgages, there are still options out there.
The good news is, some lenders offer special shared-ownership products that consider stipend income. However, keep in mind that they might factor in ground rent, service charges, and the shared ownership rent itself when deciding how much you can borrow. This can affect how big of a share you can realistically afford.
The upside? As long as you have at least a 5% deposit saved for your share, getting a mortgage on a shared-ownership property with your stipend income is still possible!
My partner has a stipend income, but I have a regular income. Can we get a mortgage together?
The good news is, even with a stipend income, you might still be able to get a mortgage with your partner's regular income.
Most lenders consider regular salaries, but some are happy to include stipend income too. This means you might have more options than you think! In fact, having a steady income from your partner can make things smoother than if you were applying alone (since some lenders prefer a mix of income types).
Typically, lenders will look at your combined income and offer a mortgage up to 4.5 times that amount.
I’m about to finish my PhD and start a research role on a contract basis. Will I be able to get a mortgage?
Absolutely! Getting a mortgage while finishing your PhD can be tricky, but it's definitely worth exploring. Here's why:
Recently, I helped someone in a similar situation. Their PhD was coming to and which also meant their Stipend income was about to end. They had a research contract lined up for two years at the same university. We proceeded with a high street lender who wouldn't usually consider stipends, but they were happy to look at the secure contract income – even though it started 3 months later!
While your situation might be different, if you have confirmed work lined up after your PhD, do get in touch as we may be able to take that income into account before you’ve started your new job.
As you can see, we know what we’re talking about when it comes to Stipend incomes. We know who to speak to, what documents will be requested and this is going to make your application easier, quicker, remove stress, reassure estate agents and vendors and ultimately mean you can be in your new home sooner. If you have any questions about mortgages for PhD students, or any other mortgage related questions, do get in touch.