Watch our Video on PhD Stipend Income

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damianyouell Securing stipend and bursary income mortgages can be something of a challenge.

In our experience, individuals with these forms of income might include PhD trainee teachers, NHS students or even in some situations, members of the clergy.

In what follows, we at Ltd well examine this area and outline some ways in which mortgage application difficulties may be overcome.


Post Contents

Watch Our Video on PhD Stipend Income

Why is it difficult to get stipend and bursary income mortgages?

How do I qualify for a stipend PhD bursary income mortgage?

How much can I borrow for a stipend bursary mortgage?

Next steps – Stipend PhD bursary income mortgages


Why is it difficult to get stipend and bursary income mortgages?

Mortgage for phd stipend mortgages are difficult because of many reasons that we will discuss in this guide to help PhD students. Perhaps the first thing to clarify is the difference between a stipend, bursary and scholarship.

A stipend is usually a sum of money advanced by an employer or other organisation to help an individual cover some of their basic costs of living. That can sometimes apply in the context of education, when trainee professionals are improving their qualifications and skills, though it might also be encountered in employment on an on-going basis, such as might be the case with the clergy.

By contrast, a bursary is income awarded by an organisation or an employer to someone who is studying under the auspices of having limited means. The award of a bursary is usually income-related and is nothing to do with academic achievement where financial aid is normally referred to as a scholarship.

The problem for recipients of stipends and bursaries arises when mortgage providers believe that either:

  • the sums they are receiving are insufficient to justify a loan in terms of being able to maintain mortgage repayments or;
  • that the monthly income is not guaranteed for a sufficient time in future.

Both of these factors essentially mean that for some mortgage lenders, bursary and stipend applicants would be a high risk to lend to. That’s why it can be challenging when trying to secure a mortgage with bursary income or a stipend income mortgage.

Of course, some applicants believe that this is short-sighted and that their future income prospects should be taken into account as well. Others might argue that as bursaries are typically paid tax-free (but check the specifics with HMRC in advance), their income should be considered to be both gross and net, rather than having automatic reductions applied which are presumed to be the effect of taxation.

Phd Stipend Income Mortgages

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How do I qualify for a stipend PhD bursary income mortgage?

Many lenders may decline to offer mortgages based upon this type of income. Fortunately, there are some stipend mortgage lenders who will do so but even they may look closely at issues such as:

  • is this a joint mortgage application? Some lenders may require a second more conventional income to be associated with the application;
  • the duration the stipend or bursary has been received over and how long it is guaranteed to continue. If you only have a short-term income forecast from your bursary or stipend, it may be difficult for some lenders to continue with an application for stipend PhD bursary income mortgages;
  • the profession you will take up the upon completion of your current studies. It is extremely difficult to generalise here because some lenders may be willing to accept clergy but no other forms of study whereas other lenders may willingly accept PhD level education for people planning a career in the NHS. Note also that some may be willing to accept income based on your estimation of positions you will secure downstream whereas others might demand evidence of a firm job offer already being in place;
  • your existing overall financial position, taking into account your total income and average monthly outgoings. As you might expect, if the resulting figures indicate you will be unable to afford mortgage payments then you may struggle to get an offer. This, in principle, is no different for stipend and bursary recipients than any other applicant;
  • it is perfectly routine for a potential lender to examine your credit history records. Minor hiccups here might not be an issue but if you have more serious credit problems on your historical files that might be a particular problem in your circumstances.

How much can I borrow for a stipend bursary mortgage?

Every phd student mortgage provider has different lending criteria  based of affordability calculations and other similar factors. As you might imagine, ultimately the amount you can borrow will be driven by two things:

  • the amount you are trying to borrow against the valuation of properties you are looking at. Most mortgage lenders will require you to find a deposit from your own financial resources and the higher the percentage you find, the easier you may also find a mortgage. Most lenders will have a maximum loan-to-value (LTV) percentage which they will not exceed – e.g. 90%. In the case of stipend and bursary income recipients, some lenders may offer a lower LTV;
  • how much you could realistically afford to repay each month against your mortgage borrowing. This figure is derived based upon a calculation of all of your permissible income versus your regular committed monthly outgoings.

Some lenders may be happy to take stipend income as a single income and might be willing to lend multiples of up to 4 x that income. 

As touched on above, both the amount you can borrow and your chances of access to funds may be increased in circumstances where you are applying as a joint applicant with another person who is in receipt of more conventional income. It is always better to consult a mortgage broker before starting your mortgage application. A professional mortgage broker could help you to contact private student loan companies in case public loan providers won’t accept your mortgage application.

Next steps – Stipend PhD bursary income mortgages

There are large numbers of stipends and bursaries – and they may be used in an ever larger number of different educational and employment situations.

The position of a bursary student studying for a PhD, as part of their career in the NHS, might be very different to that of say a clergyman studying at a seminary for a career in the church. So, different solutions for stipend and bursary income mortgages might apply.

We have only touched on some of the possibilities here for mortgage for PhD students and we would welcome the opportunity to discuss in more detail how we can go forward with you.

Some Additional FAQs for PhD student mortgages:

Is it possible to get a PhD student mortgage from a private lender?

Private student loan lenders tend to look favourably towards applicants who have been accepted onto their course or whose studies are about to commence. They often prefer to make offers within 2 weeks after receiving notification of acceptance. If this isn’t possible, it is worth contacting them again once you know when you start university so that they don’t forget about you!

Can You Get A Bursary Income Mortgage With Bad Credit?

Yes! We’ve helped lots of students who had bad credit get mortgages using their bursary income. It’s important to remember though that there are different types of bursary incomes and each type has its own requirements. Speak to us today about what kind of bursary income you’re getting and we’ll tell you exactly which ones work best for you.

How Do Student Loans Affect Getting A Mortgage?

Student loan payments cannot be included when calculating how much money you have available to borrow. They must also be paid off before any mortgages or home purchases can happen.

Is PhD Stipend a salary?

Stipends are usually considered part of your gross earnings rather than being treated as a separate source of income. However, if you want to include your stipend as an asset then you need to ensure that you pay tax on it first.

Does a PhD stipend count as income?

Yes, a PhD stipend income could be considerd for a mortgage.

How much maximum loan, can I get on my PhD stipend income?

There is no definite value of maximum loan that you can get on your PhD Stipend Income. There are various factors includes in PhD stipend mortgage that are discussed in our article above.

 How much PhD stipend mortgage could I get for joint mortgage application?

The amount for PhD stipend in joint mortgage application depends on many factors such as combine credit score, type of doctoral degree, student loan repayment etc.. It is diffiucult to get a loan as joint applicant if one of the applicant is having a bad credit score.

How do student loan repayments affect my pension contributions?

Student loan repayment can be taken from your salary before or after you make a pension contribution, depending on how you contribute and what sort of scheme you’re in.

Can you buy a home if you are a student?

If you are studying full time at the college/university level, you may qualify for certain government-backed loans to cover some or all of the cost of buying a house. There could be high chances of application approval if you are enrolled in a doctoral degree. You can contact an expert student mortgage broker and start your first step onto a property ladder.

Can I get a mortgage as a student?

Yes, you can get a mortgage as a student and start onto the property ladder in your life. You will find a number of mortgage providers for student loans. But the process is still complicated because of the low earning potential of a student. In some cases, if you don’t have any job security, you may need to find a guarantor to ensure that you can handle the mortgage repayments for the long term.

How to buy a house as a college student in the UK?

Buying a house as a college graduate can be challenging but not impossible. There are handful of lenders who could approve your mortgage application after checking your affordability requirements for monthly repayments.  If you are planning to purchase a home in the near future, you should seek out advice from a professional mortgage advisor. This way, you can avoid making costly mistakes and save yourself from unnecessary stress.

Can a full-time student get a buy-to-let mortgage?

Yes, as a full-time student you can apply for a buy to let mortgage. The BTL mortgage rates for students are lower because of the low monthly mortgage repayment. It is always better to contact an expert student mortgage broker before starting your application.

Can I also get a mortgage if I have student debt?

If you are having hefty student loan debt, you may not qualify for mortgages for students. There are only a few building societies and banks that could help you to get a mortgage with student debt and start your first step onto a property ladder. The first step, in this case, is to contact an expert mortgage broker before starting your application.