Lockhart Grey Financial Planning Ltd

Leaving university, getting your first full-time job and thinking about your future can all be daunting prospects. Your starting salary, if you live away from home, can be dramatically reduced by renting a property and therefore may be a real drain on your disposable income. Therefore it may make sound financial sense to buy your first home as soon as you leave university. Many lenders have responded to this by creating graduate mortgages.  A graduate mortgage allows you to get on the mortgage ladder earlier.

Many mortgage lenders appreciate that the majority of university students now graduate with substantial debts, therefore it may take them a long time to save  for a deposit.

Due to this factor many are prepared to offer special graduate mortgages to first time buyer university graduates. Some offer graduate mortgages of up to 100% of the property’s value however some lenders are willing to lend slightly more than 100%.   The reason for this is because many graduates are expected to achieve higher salaries in the future more quickly than their those who do not hold a degree.

What are the typical features of a graduate mortgage?

•    Must be aged 21 years or over and have a standard degree from a UK university
•    Must be in full time employment and have passed any probationary period
•    Can get up to 100% Loan to value (where available)
•    Available for those who have graduated in the last seven years
•    Can enhance borrowing to take into account legal fees, stamp duty etc

Many lenders offer enhanced income multiples based on expectation of higher future salary
The graduate may need  to borrow more than their current salary justifies.  Parents or other close relatives may be permitted to act as guarantors for the difference between what the affordability criteria the actual sum advanced.  They are not required to be guarantors for the whole mortgage.  This is dependant also on the parents own financial circumstances

At Lockhart Grey Financial Planning, we will help source the graduate mortgage that best suits your own individual circumstances.  If you require we can also arrange the legal/conveyancing service for you and arrange any surveys required to be carried out.

If you are looking for a bad credit graduate mortgage or a poor credit graduate mortgage then we are able to source a lender and product that will suit your adverse graduate mortgage needs. Your mortgage finance may depend on your and your parents own financial situation

As stated, buying your first house, getting a graduate mortgage or moving home can be a very daunting experience.

With Lockhart Grey Financial Planning’s Mortgage Service it’s never been easier to own your home and get a graduate mortgage. We can guide you through the process explaining exactly what happens at each stage and in a language you understand. We can help you in dealing with an estate agent, provide an experienced solicitor and will help you through every step to completion via our experienced processing team.

Please fill in our quick enquiry form, or call us for a free, no obligation, consultation. You may also find our mortgages glossary useful to explain some of these terms.

Remember it is in lenders’ interest to provide you with a mortgage, as long as they do not feel you are stretching yourself.  They want your business.  A mortgage is generally a lower risk to them, compared to a personal loan, or a credit card, as they always have the house to “secure” the loan against if you are unable to make your payments.