Graduate Mortgages

Graduate Mortgages have been available for a number of years now and were designed to allow recent university graduates (normally up to age 40) to get on the property ladder without the need for a deposit. The key areas which lenders focus on to differentiate their products for this market are:

• More Flexible Borrowing Limits - rather than sticking rigidly to a salary multiplier e.g. 3.5 X your salary to work out how much you can borrow, lenders will consider your full financial picture, including your age and how quickly your earnings are likely to increase. This can often allow you to borrow more than would generally be available. You should however always be comfortable that you will be able to meet the monthly payments.
• Guarantor Facility for Higher Borrowing - if you need to borrow a bit more than your current earnings will allow then lenders will consider a guarantee for the additional amount you need from a parent or close relative. They will normally assess the guarantors ability to help out with monthly payments if required. Anyone looking to act as a guarantor should seek independent legal advice first.

There are some risks you need to be aware of when looking at products such as this but overall they can be very useful for Graduate clients and lenders normally make them available on very good terms due to the lower risk involved in this sector of the market. These products are still not widely available and do differ from lender to lender. The Directors of Dedicated Mortgage Solutions have a number of years experience in this market and our expertise can help ensure you get the best deal available. For more information and advice on Graduate Mortgages please contact us on 0845 602 5541 or complete our online enquiry form.