How much can you borrow on a stipend?
Affordability calculations are carried out for every mortgage and lenders cap at income multiples to find the maximum you can borrow. These figures tend to hinge on if you have your stipend alone or if there is more income or more than one applicant.
If you are making a sole application, most lenders will decline it as the stipend alone isn’t enough to qualify for a mortgage. But there are some who will consider up to four times the stipend for a mortgage So if you have just this income alone which is £25,000 a year, you would potentially be able to borrow up to £100,000.
If you are applying with a partner, family member or friend then you may have a better chance when you have a stipend as there is more income in the household. You could even both be students but there would be a larger pool of income between the two of you. For example, if you have a stipend of £25,000 and the other applicant earns £30,000 a year then you could get from £120,000 to £275,000 mortgage depending on how many times the income the lender will consider.