What documents are needed for a stipend mortgage?
What documents are needed for a stipend mortgage?
When applying for a mortgage you will almost always be asked to prove certain things by way of documentation. Stipend mortgages are no exception. The required documents vary from lender to lender.
Last updated: 31st May 2024
When are documents required?
If you chose to work with me, I ask for all your documents right at the start of the process. I do this in order to be certain that you will be able to provide all the proofs that a lender needs way before you’ve even found the property you want to buy. This leads to the highest success rate. I’m yet to have a stipend mortgage application declined.
Once you have an offer on a property accepted, I’ll then review documents again as some may need updating if more than a month has passed.
I’ll confirm exactly what documents I need from you specifically after our first video meeting. I don’t need anything in advance of that as I need to find out about you so I know exactly what to ask you to provide.
What documents are required?
The purpose of documents if to back up what we tell the lender on the application. They fall into five main sections:
- Income
- Proof of enrolment
- Proof of deposit
- Expenditure
- Identification
Income documents
To verify your stipend income myself and lenders will want to see:
- Last three months bank statements showing your stipend funding
- If you receive a monthly or quarterly remittance statements, 3 months of these
- A letter from the university confirming your funding amount and duration
- Some lenders will ask you to provide a job advert relevant to somebody with a PhD in your field to show that your future earnings potential is as good or if not better than your current stipend
Proof of enrolment
The university wants to check that you have sufficient history and time remaining in your funding. Stipend mortgages can be obtained after your first stipend payment has been received up until you have just six months left in some circumstances. See more detail on the do you qualify page.
- A letter from your university or supervisor confirming your start and end date
- This letter should usually show your stipend amount too
Proof of deposit
Lenders are looking for a couple of things here. They need to be confident the deposit is from legitimate means, is sufficient, and is yours. Where it’s a gift this is usually fine too. Read more about deposits for stipend mortgages.
- Bank statements or statements from other investments
- Signed gifted deposit letters confirming the terms of the gift
- Signed letter confirming the status of any loaned deposit money from parents
- Lender specific gifted deposit templates
I can provide templates for you to complete where necessary.
Be sure that your deposit money is in Pound Stirling in a UK account when you are ready to apply, or you have confirmation of gifts if coming from family.
Funds currently overseas or in stock won’t be accepted until they are in UK accounts.
Expenditure
Banks want to know about your commitments and spending habits before loaning you tens or hundreds of thousands of pounds.
- Three months bank statements
- I will also ask for your credit file in order to see exactly what the bank will find out about you when they run a check on your credit file
Commitments like loans and credit cards will reduce the amount you can borrow. See the how much can you borrow page for more details and examples.
Identification
Many banks and I can identify you electronically so you may not need to provide ID documents. Sometimes copies of paper documents are also needed though.
If needed, I’ll typically ask for certified copies of:
- Valid passport
- Driving license or utility bill showing your current address
If you are not a British Citizen, you’ll need to provide:
- UK immigration share code (EU nationals)
- Visas showing right to live and work in the UK (non-EU Nationals)
Read more about rules for non-British borrowers and stipend mortgages.
How do I know what documents are needed for me specifically?
Once I’ve got all your personal details on our video call, I’ll send you an email with a list of documents needed for you specifically.
I don’t need you to provide any of these at our initial meetings as what documents I need will depend on what I find out about you.
You will always need a letter confirming your stipend amount and enrolment days as well as 3 months bank statement and proof of deposit though.
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