Does anyone have experience of applying for a mortgage whilst receiving a research studentship? I'm hoping to apply for a mortgage jointly with someone (who obviously earns a proper salary!) but have heard that many banks don't consider studentships / bursaries as 'income'. We've already been knocked back, in fact. Any tips / feedback would be really appreciated! Thanks :)

We were looking for a mortgage recently and had no problem with the HSBC. All I needed was a letter from Uni explaining what I was doing and how much I was receiving from the AHRC as with any employer. We didn't go ahead in the end due to familiy illness but over the next three years if we wanted to apply again I don't expect any problems with my 'salary'. If you look at doing a PhD as a job and get this across to lenders they should accept it. In fact nowadays many people in 'proper'jobs would be lucky to have a three-year contract.

Brilliant! There's some hope then - I'll investigate with them, thanks very much!

madeleine, also run a search with the keyword 'mortgage' on this forum. There have been some discussions in the past.

I had no problem with any of the high street lenders. I had to show stipend pay cheques from the three months prior to applying and a letter from my University stating that I had the scholorship guaranteed. They were all happy with that.

If you go for a fixed-term deal, make sure that it won't end in your writing up year when you have no income (if this applys), as I'm currently having problems remortgaging. It seems the bank d not believe two people can live off what we do live off, so we can't get the cheaper mortgage as we can only afford the base rate... but that is another problem all together... (and breathe...)

Just thought I would update on this. When we applied for a mortgage last year with HSBC there was no problem. We are now in a position of going ahead with a purchase but decided to look round for a better deal. With a whole of market broker we have just been told no-one accepts PhD stipends as proper income. If you don't tick their boxes you are just dismissed. I think the word 'student' scares people. HSBC are probably the only lender that will accept PhD stipends so we will go back to them or my Dad is going to act as guarantor as we 'don't have enough income to cover mortgage payments' although obviously we do - but mine is classed as Monopoly money!

Good luck - HSBC are actually quite good anyway, but we found that Lloyds TSB (Scottish Widows) accepted the stipend as 'income' as well

Thanks. We'll have a look at them as well.

A couple of friends of mine have got mortgages whilst on PhD stipend, Northern Rock and Woolwich I think. They both just needed a letter from the University confirming the amount and duration of the stipend.

W went with Halifax, they accepted mine (but I wouldn't recommend them for numerous other reasons, including the fact that they took so long to process our application that my stipend ended and I got a part time job - we had to then re-apply as my circumstances had changes and almost lost our house!)

We went through a broker 4 years ago and the lenders refused to acknowledge my income so we had to be self-certified. We've now remortgaged and save over £100 which is what the new mortgage has increased by with interest rates rising.
I know someone at the beginning of a PhD who used payslips from his previous job, which is is a bit dishonest but worked.

That was we save £100 per MONTH

Well I wish I'd asked here at the time. I went to a mortgage advisor at the beginning of my PhD and was told that it was difficult to get a mortgage as a student (even if the stipend is better than many jobs and guaranteed for 3 years) - unless I paid a big deposit. I went to the Halifax, and they said either I had to contribute a 20% deposit (HAH!) and then they'd still have to go through a business case, or have a guarantor. I ended up going down the guarantor route as fortunately my Dad was still working at that stage. Fixed rate mortgages are great as they remain constant for 3 years, & I was lucky in that rates hadn't changed when I renewed the mortgage. I now rent out the flat as I can't afford the mortgage! (4th year no money). But I remind myself that it's a great investment

Just an update. We have finally got our mortgage - with Nationwide. No higher lending charge, accepted my student income and fees not too high. Hurrah.
I'll invite everyone to a virtual housewarming when we move in.

I don't know if anyone is interested but I have another update. I phoned Nationwide for a small query about the paperwork and was then told 'sorry, we don't actually accept student income'!!!! I am fuming as I checked over and over with a number of mortgage 'advisors' and supervisors before going ahead. We have paid out money for fees etc because of this. They are going back to the risk assessors to see whether we can still go ahead - I have explained that my income is the lowest it will probably be and after my PhD i will be on a good salary (yes I know that is a lie and I might have to work in a bakery) but we have covered our rent while I wasn't earning and the mortgage is the same amount.