I'd just like to second Sneaks on this - it most probably is a good time to buy. I know there's always a theoretical risk prices will fall further, but all the signs are that they've hit bottom.

We bought our first house in 1998, just as prices were starting to climb after the last property price crash, and I'm so glad we did. Getting that foot on the ladder while houses were affordable enabled us to move on to bigger and better houses as our family grew, and we managed to make enough money on the sale of our last house (in quite an expensive area) to buy a bigger, cheaper place across town and do loads of work on it. Now our four kids all have their own bedrooms for the first time ever - luxury!

This isn't supposed to be one of those gloating 'look how much money we've made/how big our house is' stories - but the fact is, if we hadn't bought when we did, on our income we would be living in a poky 3-bed rented house today rather than in a big 5-bed house we own a good chunk of (say 100k's worth - our mortgage is 90k). We couldn't come close to buying a family home at today's prices.

That's why I drew attention to the possibility of buying a share in a house, I guess - at least it would be a way of getting on that ladder. But I suppose prices are really not likely to boom over the next few years in the way they did in the years after we first bought, so there's probably no reason to get too anxious about buying rather than renting right now... like I say, I guess the crucial thing is to invest that 50k wisely somewhere, even if no-one will yet let you put it into bricks and mortar.

We're quite limited on the house share front. There are very few schemes and we're limited to 1/2 towns as we need to live slap bang in the middle of where my husband commutes to and where I do. There's the further issue that most of these properties are flats and as we're planning a family we really would like a house with a garden.

I understand your frustration. We want to buy too (although we're probably going to wait a bit longer - I want to see a proper sign that prices are going to go up as they still haven't fallen enough to be affordable in comparison to salaries) but at least my partner is in a permanent job. However, I have to say I do understand the change of attitude in the mortgage business: PhD stipends are short term with no guaranteed income at the end and a mortgage will always be taken out for longer than the time you will have a stipend for. Admittedly no job is secure at the moment but the principle is one I can understand. It will take time for that to change, but one of the things that will change it is a definite sign of the market reaching the bottom and going up, rather than the uncertain is it/isn't it that's going on at the moment. Good luck though.

It sounds like we'll get somewhere in the end using my in-laws premium banking for their business. Megara - I completely agree, but my husband is a trained teacher and has always been able to get supply work on demand. Our guarantors also have a large amount of assets..... so there's virtually no chance of them not getting paid!

It does seem illogical then, doesn't it? Unfortunately most of the people in banks doing this sort of thing aren't trained to think things through, only to go with the box ticking approach. Therein lies the advantage of using a broker I'd have thought. My planned way of getting round things is to use income I have on paper other than my stipend: my parents bought a house which I lived in when I was an undergrad with some tenants but in my name, giving me official income from the tenants in there which almost matches my stipend, even though I don't actually get that money. I don't know how much better a position that would leave us in but I think it has to look more reliable than the PhD income! Glad to see things are looking more hopeful for you!

I think that sounds like a plan.... mostly because they're likely to take the whole amount as income (lets just hope they don't want bank statements!).... with stipends the maximum anyone seems to be doing is counting 60% of them as income, which even with both of us getting stipends means our 30k income is reduced to less than 20k x 3.5 = not very much!
Good luck with your hunt too. Looks like the market is picking up in our area at least. 3 of the 6 houses we've seen in the last fortnight sold within 3 days of us having seen them, including two that we were interested in! Argh!
S

I managed to get a mortgage recently, but only by using one of my parents as a guarantor. I went to a very helpful mortgage broker who did all the hard work for me and explained everything to me without all the jargon. However, I might as well have been receiving no stipend at all, as the mortgage company (Leeds building soc) don't even consider it - they were only interested in my Dad's income. Unfortunately I had to get an interest-only mortgage which is a more expensive option in the long run, but I'll be able to change that once I have a 'proper' job!! So in theory it's possible, although it's probably better to go to someone who knows what they're doing and can do all the searching for you!

Its because your stipend is not taxable income

Theft - i think we all understand the basis, if not the reasoning, for this already.

I was once summonned by my bank manager (eeek).
He said that he had noticed that my income had changed and could I explain it.
(I previously had had a local authority staff job and left for a much better paid 'contract' job.)
I explained this and he said he was going to change the terms of my loan (i.e. to a higher interest rate) as he considered me to be a higher risk.
I explained that although, yes, I was now contract rather than staff, I had a written contract guaranteeing me at least 2 years employment.
I wondered if he could say the same ??? (at the time the bank were laying off loads of managers......aaah shame)

I don't think he appreciated the point.

I think at the moment the pendulum has swung too far "the other way" and the banks are severly risk averse at the moment.
By this time next year, they will be lending again.
The year after that it'll be back to "anything goes".
"£16k stipend Sir.....of course you can borrow half a million"