Can You Get a Mortgage on a Stipend Income in the UK?
If you’re receiving a stipend income, whether as a PhD student, charity worker, clergy member, or researcher, you might be asking: can I get a mortgage on a stipend income in the UK? The short answer is: yes, in some cases, but it depends on the lender.
At The Mortgage Pod, we specialise in helping applicants with unique or non-traditional income streams, including stipend income, secure mortgage deals from lenders who are open to different financial situations.
What Is a Stipend and Why Do Lenders Treat It Differently?
A stipend is a fixed but non-salaried monthly income often awarded to PhD students, interns, trainees, clergy members, or researchers. It may be funded by research grants, institutions, or charities. Because it doesn’t come with a traditional employment contract and isn’t classed as taxable income, most lenders don’t automatically treat it as steady income.
That said, some specialist lenders and even a few mainstream lenders will consider a mortgage with stipend income particularly if you meet other lending criteria like a strong credit history, low credit card balances, and additional income alongside your stipend.
Challenges of Stipend Mortgages
While it’s possible to get a mortgage with stipend income, there are a few common hurdles to be aware of. Understanding these ahead of time can help you prepare and boost your chances of success.
1. Limited Lender Options
Not many lenders offer stipend mortgages, and even fewer accept stipend income as part of their affordability checks. Mainstream lenders often prefer traditional employment contracts and steady, taxable income. That means stipend income, which isn’t considered a formal salary, is often excluded from standard lending criteria.
PhD stipend recipients, charity workers, or clergy members may need to approach specialist lenders who are more familiar with these types of funding.
2. Minimum Income Requirement Concerns
Stipend payments are frequently lower than a full-time wage and may fall below a lender’s minimum income requirement for securing a mortgage. Even if your monthly expenses are manageable, lenders might not count your full stipend amount when running affordability calculations, making it harder to qualify for a mortgage based on stipend income alone.
3. Affordability Assessments May Exclude Stipend Income
Because a stipend is not always classed as taxable income, some lenders don’t include it when calculating your maximum mortgage or assessing your ability to make mortgage repayments. In these cases, you might be required to show income alongside your stipend, such as part-time work or freelance contracts, to pass the affordability assessment.
4. Larger Deposit May Be Required
Without traditional payslips, many mortgage lenders see stipend income as higher risk. To offset that risk, you may be asked to contribute a larger deposit, often 15–25% of the property’s value. A bigger deposit can also help reduce your loan to value ratio, which makes your application more appealing and may open the door to better mortgage deals.
5. Proof of Long-Term Financial Stability Is Difficult
Many applicants rely solely on bank statements to prove their stipend payments. However, lenders typically want more than that, they may request formal documentation, such as a stipend award letter, confirmation of funding duration, and proof of regularity. Without this, your financial position may appear unstable, even if you’re budgeting well and covering your living costs.
6. Only Certain Institutions Are Accepted
Some lenders will only accept stipend income from trusted institutions, like a UK university, research council, or religious body. If your stipend comes from a smaller charity or less familiar source, you may need a mortgage broker to help find a mortgage provider who understands your setup and is willing to consider your application seriously.
When Do Lenders Accept Stipend Income?
Some stipend mortgage lenders will accept stipend income if:
- The stipend amount is stable, regular, and from a trusted source (e.g. university or diocese)
- The payment is guaranteed for a set period (usually 2+ years)
- The applicant has minimal other financial commitments
- The mortgage application includes another borrower with salaried income
- The borrower has a good credit score and manageable mortgage repayments
Whether you’re a PhD student, member of the clergy, or a non-British citizen with a clergy stipend, having the right setup can help you qualify for a mortgage even without a traditional payslip.
Tips to Boost Your Application
If you’re hoping to get a mortgage while receiving stipend income, here’s what can help:
Strengthen Your Credit File
Lenders typically look at your credit file, so try to pay down credit card balances, keep up with payments, and avoid late fees.
Save a Larger Deposit
A larger deposit reduces your loan to value ratio, which improves your affordability assessment and can unlock better mortgage deals.
Include a Joint Applicant
Adding a co-borrower with stable annual income and financial commitments can increase your maximum mortgage amount.
Gather Documentation
Have proof of your stipend income such as award letters, bank statements, and details of the funding period. You’ll need these for the mortgage process.
Work with a Specialist Mortgage Broker
A mortgage broker, such as our team here at The Mortgage Pod, who understands stipend income mortgages can match you with a mortgage provider that will accept your income structure.
How The Mortgage Pod Can Help
We’ve helped everyone from PhD students to clergy members secure mortgages using their stipend income. Whether you’re applying for a buy to let mortgage, a joint mortgage, or your first home, we’ll:
- Identify mortgage lenders who accept stipend-based income
- Guide you through the full mortgage application process
- Help you present your income in a way that meets lenders’ criteria
- Offer professional advice every step of the way
Whether you’re looking to get a stipend mortgage now or planning for the future, we’ll ensure you’re supported with the right lender and the best possible mortgage deal.
Ready to Explore Your Options?
If you’re receiving a stipend payment and want to understand your options for buying a home, The Mortgage Pod is here to help.
Let us guide you through the process of securing a mortgage in the UK, even if many mortgage lenders have turned you away.
Speak to our mortgage advisors today and find out how to get a mortgage based on your stipend income, without the stress.
Frequently Asked Questions
Can you get a mortgage on a stipend income in the UK?
Yes, but only some mortgage lenders accept stipend income as part of a mortgage application. While most mainstream lenders prefer salaried income, there are specialist lenders who offer stipend income mortgages, especially if you meet their affordability assessment and credit requirements.
What kind of stipend income do lenders accept?
Some lenders accept PhD stipend income, clergy stipends, or charity-funded stipends, particularly if they’re regular, long-term, and from a recognised source like a university or diocese. The stipend amount, stability, and documentation all factor into whether you can qualify for a mortgage.
What if my stipend income doesn’t meet the minimum income requirement?
If your stipend payment is below the lender’s minimum income, consider applying with a joint mortgage or adding income alongside your stipend, such as freelance work or a housing allowance. A mortgage broker can help you find lenders that accept a wider range of income streams.
Can I get a mortgage as a PhD student?
Yes, some stipend mortgage lenders accept PhD students, especially if your funding is guaranteed for at least two years. You’ll need strong documentation, a clean credit file, and possibly a larger deposit to meet loan to value criteria and secure a good mortgage deal.
Does having bad credit affect my chances?
Yes, a bad credit history can impact your mortgage with stipend income, but it doesn’t always disqualify you. Some specialist lenders will work with applicants who’ve had credit issues, especially if you can show reliable monthly income and low credit card balances.
How can a mortgage broker help with stipend income?
A mortgage advisor or broker experienced in stipend mortgages can connect you with lenders who accept non-traditional incomes. They’ll guide you through the mortgage process, help present your case clearly, and improve your chances of approval, especially if most lenders have said no.
