Mortgage and Scholarship Income

brainiac

Hi All,

Just wondering if anyone has any previous experience with a situation like this. My partner and I are looking to buy a relatively cheap house (200 - 220k).

She works a fairly good job and has most of the income value herself. I have a scholarship which accounts for about half of my income and then I do teaching and other work for my department which accounts for the other half.

Now, the issue we have found when we talked to KBC is that they won't accept my scholarship funds (despite it being guaranteed income on a monthly basis) as part of the calculation of our income.

I'm worried this might be a global issue with all banks. It knocks our affordable houses slightly below 200k which doesn't really get you much in Outer Dublin / outskirts of Kildare where we're looking.

Of course, the plan is to meet with other banks soon and discuss the situation with them (perhaps a broker too). If anyone has been in this situation before or has any knowledge on the matter that would be great.

Thanks!

3DataModem

brainiac wrote: »

Hi All,

Just wondering if anyone has any previous experience with a situation like this. My partner and I are looking to buy a relatively cheap house (200 - 220k).

She works a fairly good job and has most of the income value herself. I have a scholarship which accounts for about half of my income and then I do teaching and other work for my department which accounts for the other half.

Now, the issue we have found when we talked to KBC is that they won't accept my scholarship funds (despite it being guaranteed income on a monthly basis) as part of the calculation of our income.

I'm worried this might be a global issue with all banks. It knocks our affordable houses slightly below 200k which doesn't really get you much in Outer Dublin / outskirts of Kildare where we're looking.

Of course, the plan is to meet with other banks soon and discuss the situation with them (perhaps a broker too). If anyone has been in this situation before or has any knowledge on the matter that would be great.

Thanks!

Go to a broker. They’ll know the score. PM me for a recommendation from south dublin.

jimmycrackcorm

brainiac wrote:

Now, the issue we have found when we talked to KBC is that they won't accept my scholarship funds (despite it being guaranteed income on a monthly basis) as part of the calculation of our income.

Don't go to KBC, they're terrible to try get a mortgage from.

fungie

brainiac wrote: »

Hi All,

Just wondering if anyone has any previous experience with a situation like this. My partner and I are looking to buy a relatively cheap house (200 - 220k).

She works a fairly good job and has most of the income value herself. I have a scholarship which accounts for about half of my income and then I do teaching and other work for my department which accounts for the other half.

Now, the issue we have found when we talked to KBC is that they won't accept my scholarship funds (despite it being guaranteed income on a monthly basis) as part of the calculation of our income.

I'm worried this might be a global issue with all banks. It knocks our affordable houses slightly below 200k which doesn't really get you much in Outer Dublin / outskirts of Kildare where we're looking.

Of course, the plan is to meet with other banks soon and discuss the situation with them (perhaps a broker too). If anyone has been in this situation before or has any knowledge on the matter that would be great.

Thanks!

They won't take scholarships/stipends into account. Since you are a student (I'm assuming) you aren't employed.

brainiac

Cheers folks, I think the broker might be the best bet alright, see what they can source. Otherwise it'll just be a somewhat lower budget I guess.

fungie wrote: »

They won't take scholarships/stipends into account. Since you are a student (I'm assuming) you aren't employed.

To clarify on that, it's a PhD scholarship, and I am also employed by the University as an "Occasional Academic". Unfortunately the scholarship stipend and the monthly salary come in via two seperate pay streams, with only the taxable income present on my main payslips / P60.

the_syco

brainiac wrote: »

To clarify on that, it's a PhD scholarship

Did/do you have a letter from the university clarifying this?

Also, check if the college have come across this before, in case they have a term for what you do that describes it in a way that the bank likes it. I doubt you'll have been the first with this issue.

Victor

Presumably the scholarship will end in 1-3 years, leaving you without a chunk of your income. Hence the reluctance.

brainiac

the_syco wrote: »

Did/do you have a letter from the university clarifying this?

Also, check if the college have come across this before, in case they have a term for what you do that describes it in a way that the bank likes it. I doubt you'll have been the first with this issue.

I could certainly get some form of letter I'm sure. Good idea, cheers.

Victor wrote: »

Presumably the scholarship will end in 1-3 years, leaving you without a chunk of your income. Hence the reluctance.

Yeah, I get the 1-3 years element but most recognise the earning potential after the fact too.

GingerLily

brainiac wrote: »

Yeah, I get the 1-3 years element but most recognise the earning potential after the fact too.

They did that before the last boom and it didn't work out very well.

Its not always easy to get a job straight after achedmia anyway, and you may not finish in the time lines you expect.

dudara

brainiac wrote: »

Yeah, I get the 1-3 years element but most recognise the earning potential after the fact too.

Future earning potential, not guaranteed income unfortunately. Your best bet is probably to get a good broker who can advise on how best to apply

fungie

brainiac wrote: »

To clarify on that, it's a PhD scholarship, and I am also employed by the University as an "Occasional Academic". Unfortunately the scholarship stipend and the monthly salary come in via two seperate pay streams, with only the taxable income present on my main payslips / P60.

I was on a PhD scholarship too, It's not income and therefore banks won't accept it. The lecturing/labs/tutorials wouldn't count as you a contract employee rather than permanent, i.e. not tenured staff.

johnnyskeleton

A banker is someone who will give you an umbrella on a sunny day, but will take it away as soon as it threatens to rain.

As someone above advised, a broker might be the way to go in this scenario.