Graduate Mortgages

lisachester

As a first time buyer, I have many queries about my options -some of which have already been addressed on the forums **paton the back** thanks all!

I now also realise that a graduate mortgage would be a good option, as I have only just graduated! Does anyone have any pointers on who is a good lender, or even just general tips? Perhaps even someone has / had a Graduate Mortgage?

Thanks, Lisa x

MortgageMamma

standard life are very good for graduate mortgage, but before you rush in to getting yourself one, what is it about them that makes you think it would be good for you that you can't find with a conventional mortgage?

lisachester

The entire prospect of buying a property has been thrown upon me, and I haven't had time to save up any money for deposit or fees etc. One of my friends mentioned that certain lenders will reimburse a portion of costs, and also allow interest-only first year or two, without the need to provide evidence of endowments/savings etc. I don't really know what the plus sides are as such, but thought it worth while having a look down that path.

MortgageMamma

Hi Lisa

Let me help you then. A lot of graduate mortgages are stepped, that means they start off at a silly rate like 3.99% then increase in six monthly/annual steps. They are good if you are on a well defined career path with guaranteed progression and pay rises. The bad side is that no one has a crystal ball, and planning for cost increases in years to come is a little risky on your behalf. Any lender will let you have an interest only loan for a portion of time (its usually good to swap next time you remortgage say at the end of a fixed deal). There are plenty of good 100% deals available that you could go on where the payments would remain level. Graduate mortgages will someimes let you lend that little bit more, but I feel that with the trend for more and more maintstream lenders assessing on affordability instead of income multiples the graduate mortgage may not be the most appropriate option.

I think with you being new to mortgages, and you are clearly anxious to investigate to make sure you are making the right decision, that it would be advantagous for you to ask a fee's free mortgage broker to explain all your options step by step and then you should work together to come up with the most suitable mortgage product. If the broker doesn't get exactly what you want first time then you can always go back and say so.

MM

lisachester

Thanks very much - I really appreciate it! You obv love doing what you do, which is great.

Thanks again, hopefully this will all work out then! *crosses fingers*

MortgageMamma

lisachester wrote:

Thanks very much - I really appreciate it! You obv love doing what you do, which is great.

Thanks again, hopefully this will all work out then! *crosses fingers*

Yeah I love my job, cos I love helping people, and I pride myself on being honest and straight to the point.

Very very sad that isnt it!:rotfl: you normally hear people moaning about their jobs, I just run off adrenalin!