Mortgages using Stipend Income.

At Fox Davidson, we understand that the journey to homeownership is unique for everyone. One of our specialist areas of mortgage advice is securing stipend income mortgages. 

We help clients wishing to buy property using income from a stipend and a bursary. In this article, we’ll delve into the intricacies of stipend income mortgages and how, as a specialised stipend income mortgage broker we have helped many clients over the last 10 years to secure the funding they need.

Understanding Stipend and Bursary Income.

Stipend and bursary income are a recognised source of income in the UK. However, not all mortgage lenders understand the income type and therefore not all lenders will accept stipend income for mortgage lending purposes. That is where we come in. 

Challenges Faced by Stipend & Bursary Income Earners:

The challenges associated with securing a mortgage on stipend income stem from the unconventional nature of this income source. Traditional lenders may be hesitant to consider stipends as a stable and reliable source of income, leading to difficulties for individuals relying on stipends and bursaries for affordability. Back in 2013 we started to specialise in this area and because of our relationship with stipend income mortgage lenders we can offer clients funding options from a large pool of lenders, each of whom have their unique benefits. 

The Fox Davidson Approach:

We will complete a short initial enquiry with you to gather some key information. Following that call we will start our research. Our aim is to secure the best possible terms for each client. Your driving factor may simply be the best rate or perhaps you need the largest loan possible. 

Key Considerations for Stipend Income Mortgages:

  • Comprehensive Financial Assessment:

Our initial assessment includes a detailed analysis of the stipend income, understanding its consistency, duration, and any additional sources of financial support you may have. In some cases our clients are applying on a joint mortgage basis with a partner and we are able to combine the two incomes for greater affordability. 

  • Building a Holistic Financial Picture:

Beyond stipend income, we work with clients to build a holistic financial picture. This may include exploring additional income streams, financial assets, and any plans for career progression or supplementary income in the future.


Collaboration with Specialised Lenders:

Fox Davidson’s established relationships with lenders who specialise in accommodating stipend income earners are instrumental in our success. These lenders recognise the value and stability of stipends, allowing us to negotiate terms that are favourable to our clients.

Demonstrating Financial Stability:

Crafting a compelling case involves demonstrating the client’s overall financial stability. This may include showcasing prudent financial management, minimal debt, and a clear understanding of the long-term financial commitment associated with homeownership.

Flexibility in Mortgage Products:

Our approach involves exploring a variety of mortgage products that align with the client’s unique financial situation. This may include interest-only mortgages, flexible repayment options, fixed rate mortgages to help with budgeting or mortgages with unique terms that cater specifically to individuals with stipend income.

To discuss mortgages using stipend income please do get in touch with one of the team. we look forward to working with you. 


Can stipend income be used for affordability on a mortgage?

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Stipend income can be used for affordability purposes with a handful of UK mortgage lenders. Lenders will look at the amount and the term of the stipend in making their assessment. 


How much can I borrow on a stipend income?

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Mortgage lenders lending to applicants with a stipend income typically lend 4.5 to 5 X income. A lender will factor in the cost of living and any debts you may have in their affordability assessment. The higher the income the more likely a lender is to lend at an increased income multiple.  

Applying with a second applicant with a second source of income will greatly increase your chances of being able to borrow at a higher multiple of income too. 


Which lenders will accept stipend income?

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There are a handful of high street banks and building societies that will lend to an applicant receiving a stipend income.


Can I get a buy to let mortgage with stipend income?

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Buy-to-let lenders will lend to applicants receiving a stipend income. You can typically borrow up to 75% of the property value. The loan is typically calculated using the market rent of the buy-to-let property.


Working with Fox Davidson. 

Navigating the path to homeownership with a stipend and bursary income requires a mortgage broker with specialised knowledge and a commitment to understanding the unique challenges of unconventional income sources. Fox Davidson’s success in securing mortgages for clients with stipend income is a testament to our expertise and dedication to facilitating homeownership for individuals in diverse financial circumstances. If you are an individual with a stipend income aspiring to own a home in the UK, please get in touch and discuss your stipend income mortgage case with us. We look forward to working with you. 

To discuss stipend and bursary income mortgages with a mortgage broker please complete our enquiry form or call us for an initial chat.