At Limetree Financial Services we receive enquiries on a daily basis from clients looking for mortgages where their income may not be as straightforward. We see salaries coming from a variety of sources, such as employed income , Self-employed , clients on short-term or long-term contracts, and clients working family businesses.
Most recently I have seen two clients who are full time students who require a mortgage where their income derives from Stipend funding. More and more students would rather buy a property than rent due to high rental costs.
When researching mortgages we will call various lenders to confirm their criteria and whether their income/ circumstances are acceptable to the lender. The difficulty when placing a mortgage for clients who receive funding for further education in this way is most lenders will not accept it, actually all but one lender would not accept Stipend income! This is due to the fact that whilst studying the students do not have a confirmed job offer at the end. This worries potential lender which is why they tend not to accept this income, as the risk to the mortgage debt is very high, especially if the applicant does not find work after they gain the qualification.
There was only one lender that we could place these clients mortgages with and it requires a lot of work sending paperwork and confirmation to the underwriters of the course . We work tirelessly to ensure that we are able to meet clients needs which means a lot of time on the phone to lenders discussing their case and speaking to underwriters to confirm all details to obtain the Mortgage Offer.
The last application with Stipend income we had the mortgage offer issued within 7 working days of the application being submitted !!
If your income is not straightforward then we are the ones to call!
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