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Mortgages

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
Does anyone know (or know where I can find out) if a PhD studentship counts as income when it come to mortgages? I'm in my first year of an MPhil/PhD and currently get £9.5k (could rise to 12k if I get an AHRC grant) plus £3.1k from working part-time.

I'm not sure why I'm asking, as the chances of us being able to move out any time soon with a joint income of £35000 are pretty slim to non-existant, but hey.....

At the moment I'm feel pretty damn guilty, because I think my 'career' choice means us postponing being able to move out of the bfs mum's place for at least 3 years, but if I know my money could count towards our joint income, it means there's at least some chance of us being able to look in 2 years, when t'other half finishes his training contract.

Bloody London house-prices :(

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
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  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    With a joint income of 35,000 you should easily be able to get a mortgage on a property around the 100K mark. As GWST says, get an IFA to have a look for you and get some quotes.

    I've just bought a house, and got a 75k Mortgage paying back around 465quid per month, and that's fixed for 2 years (I did this so I know what I'm paying out for the foreseeable future). This mortgage also paid most of my fees too (they call it HWC - help with costs, and providing you stay with them for the tie in period (2 years in my case), they pay your solicitors and arrangement fees).

    Shop around though, there are some good deals out there at the mo, the market does seem to be slowing.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Basically I can't add anything to what GWST said, we got a very good deal on what is a marginally lower combined income than yours.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Thanks everyone for giving me a bit of optimism!
    Kermit wrote:
    Basically I can't add anything to what GWST said, we got a very good deal on what is a marginally lower combined income than yours.

    Ah yes, but round where we are and certainly anywhere with decent links into town, you're looking at at least £120k for a pokey studio flat even, so we're probably going to have to wait until Dunc's on proper solicitor's money whatever happens. I'd just feel happier if my studentship could be factored into the equation too.

    It'll certainly be worth having a natter to an IFA at some point though, so cheers for the suggestion. I'll bring it up, next time he has one of his 'we're never gonna afford a place of our own :grump:' grumps....
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I'd have a look around. Whilst you won't get a London two-bed terrace in a good area for the £100,000 we paid, you will find things I'm sure of it.

    They also do parental mortgages, where one or both of your parents is on the title deeds, and is jointly responsible for the mortgage. In those cases they take into account your parents equity.

    Just have a ratch around. The extreme cost of buying is understood by lenders, and they look at affordability not any strict salary guidelines, unlike in the past.

    You may find that you'd have to live somewhere not ideal as a first home. But if you can pay rent you can pay a mortgage in most cases, and mortgages aren't spitting money down the drain, unlike renting.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Kermit wrote:
    But if you can pay rent you can pay a mortgage in most cases, and mortgages aren't spitting money down the drain, unlike renting.

    I totally agree about the spitting money down the drain bit, which is partly why we're at Dunc's mum's and together paying only £350 a month. I think the other hurdle is going to be getting together a deposit, which would be impossible whilst paying rent at commercial rates and sorting out our finances. At least as it is Dunc's been able to save a bit as well as paying off the tear-inducing loan from law school (I'm not really able to yet - concentrating on getting my overdraft down and paying off credit cards and my CDL). Whilst I may have been complaining just now, I know we're in a pretty good situation...we'll just have to sit tight for a while...
  • KimonoKimono Posts: 201 Trailblazer
    I think it's worth you checking out the Financial Services Authority's mortgage section. It's got some good features like 'Can you afford it?', plus there's a nifty mortgage calculator too.

    Not exactly thrilling reading, but comprehensive and useful nonetheless.

    They've also got a helpline for queries about financial products and services: 0845 606 1234

    Kx
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