Bursary Income Mortgage
Everything you need to know about getting a Bursary Income Mortgage. Everything you need to know all in one place!
Can You Get A Bursary Income Mortgage?
Getting a Bursary Income Mortgage is very difficult but it is possible. Teachers, Nurses and other professions will often get a bursary whilst training. We can use this income to get a mortgage.
There are not many lenders that will take bursary income, and some may require a contract at the end of the bursary. However, some will just take you on your bursary income and assume you will get a contract at the end of it.
Does Student Bursary Count As Income For Mortgage?
Yes, both bursary and stipend can count as income for a mortgage. But not with all lenders. Most don’t offer a bursary income mortgage option. Maintenance loans don’t count as income for a mortgage unfortunately as they will ultimately need to be repaid.
Can I Get A Mortgage With A Bursary?
Most lenders don’t take a Bursary as income. However, a couple do and will take it on the assumption that you will get a contract at the end of your bursary that will be equivalent.
As your income once you are qualified is usually a lot higher than the bursary income.
What Income Can Be Used To Qualify For A Mortgage?
- Basic Employed Income
- Freelance Income
- Zero Hour Contract income
- Part time Income
- Bursary Income
- Stipend Income
There may be other types of income that can be taken and you should always speak to a qualified advisor to go through your options.
Is Student Loan Classed As Income For Mortgage?
Unfortunately student and maintenance loans can’t be used as income. This is down to the fact that it needs to be repaid at some point. You could potentially use it as a deposit with some lenders, but most won’t allow that even.
Can Stipend Income Be Used To Qualify For A Mortgage?
Much like bursary income, Stipend income can be used to qualify for a mortgage. Lots of career paths may receive a stipend whilst training. This can be used in place of income on the premise that you will earn more than this once qualified.
How Do Student Loans Affect Getting A Mortgage?
Student loans are viewed differently depending on the lender you go with. Some will deduct them from your affordability whereas others may ignore them.
If you speak to a qualified advisor they will be able to advise on how the recommended lender will view your student loan.
Who Can Get A Bursary Mortgage?
Anyone receiving a bursary can get a Bursary Income Mortgage, the most common people we find that are receiving bursary income are:
- Trainee Teachers – more on Trainee Teacher Mortgages here.
- NHS Staff
There may be other careers that receive a bursary income but these are the most common.
Can I Use Bursary Teaching Income On A Mortgage?
The most common Bursary income we see is Teachers that are still training. Whilst training Teachers usually receive a bursary income. This combined with the fact that most lenders don’t take NQTs means that Trainee Teachers can really struggle to get a mortgage.
Some lenders will take your bursary income or if you have your NQT contract they can use that salary instead.
What Mortgage Companies That Accept Bursaries?
There are a few options for mortgage companies that accept bursaries. The most well known is probably Barclays. They offer to take your bursary income, however, they will want to see your contract for the job at the end of the training.
There are however some lenders that do not require the contract at the end of training, so even without that you should speak to a qualified advisor that can help.
Getting A Teaching Bursary Mortgage?
Getting a teaching bursary mortgage is quite straightforward and something we do for our clients daily.
You will need a copy of the email regarding your Bursary and three months of bank statements showing the payments going in. If you have only just started the bursary you won’t need to show three payments, but they will want to see at least one.
Can You Get A Bursary Income Mortgage With Bad Credit?
Having bad credit can be problematic if you are looking to get a bursary income mortgage. However, if it is old or small you may still have options. Generally if it is under £500 and there was a good reason for it you may not need to worry about it.
If you have bad credit it’s always best to speak to a qualified advisor to discuss your options.