Mortgage News : Graduate Mortgage


Graduate Mortgages

Some UK banks now offer a graduate mortgage to those who have recently left university, whilst others will even offer their schemes to borrowers who graduated up to six years ago.

Graduate mortgages can have several different features, some will even offer to lend over and above the purchase price of a property, allowing you to cover the fees and pay off some of your debts.

You must be over 21 years of age, and be educated to degree standard from a recognised UK University and provide proof by way of a degree certificate.

The crucial first step is to do all you can to get together a deposit. Only this will give you access to the best value mortgages. The bigger the deposit you can get, the better.

The other thing to watch out for with graduate mortgages and other mortgages for first time buyers is the so called higher lending charge (formerly known as Mig) which can add thousands to a borrower's bill. Around two thirds of lenders impose a higher lending charge when people are looking to borrow above a certain amount, usually 85% to 90% of the value of the property they are buying. So when you compare offers from the different lenders you should take this into account, there are good deals out their but you need to look.

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