best graduate mortgage

crazyspaniels

OK so my little brother is finally in a position to buy his first flat, getting a mortgage for about £100,000, thing is he spoke to a chap from the Halifax who told him not to put his whole £20,000 deposit down, just 10%. I think this is wrong and he would be better off putting down what he can. So can anyone suggest some really good graduate/new owner deals on the market if he wants to put down £20,000 and get a mortgage for about £100,000?

herbiesjp

Has your brother got seperate funds for other fees etc? Has he got an emregency fund of money to cover unexpected costs?

If so, then potentially putting the whole deposit down will mean cheaper repayments. He may even get slightly better deals with some lenders as the LTV goes from 90% to 83.3%.

Otherwise I would keep some back.

Depending on his income and other debts etc, most lenders will be able to help

crazyspaniels

thanks, the deposit is an inheritance so not something he will miss or relies on. what are some good deals at the moment?

herbiesjp

What is his income?

crazyspaniels

about £25,000

herbiesjp

He will not need a specific graduate mortgage and can proably look at fixed rates from 4.59%

JoeyEmma

We looked at graduate mortgages. TBH they are not much cop. They are aimed at trying to get you to take out a 100% mortgage or to be tied in for 5 years. There are far better rates out there.

Have a look at moneysupermarket or some rough ideas of costings.

We are going with Nationwide, but only have a 5% deposit to put down

tomstickland

If the property is £120K then put down a 10% deposit, ie: £12K or maybe even £15-16K, leaving a small safety margin of funds and still allowing decent rates. FTB mortgages are available with rates in the mid 4s.