First time home buyer news: Moneyfacts comments on graduate mortgages

27-Jun-2006

A number of Mortgage lenders have launched products with terms exclusively available to help graduate first time buyers onto the first rung of the property ladder.

Terms are offered to suit the financial situation of graduate first time buyers, such as having little or no savings for a deposit or set-up fees, but the potential for high earnings in the future.

Providers include HSBC, Scottish Widows Bank and Co-operative Bank and the products generally require no deposit, offer 100 per cent loan-to-value, have relatively low set-up fees and offer good income multiples.

However, personal finance advice website, Moneyfacts.co.uk, warns against first time buyers agreeing to a mortgage because it is specifically aimed at them.

Julia Harris, mortgage analyst at Moneyfacts.co.uk, said: "Equally competitive and suitable deals can be found from other providers, designing products to meet a much wider and still-demanding first time buyer market, in many instances requiring similar features to graduates."

Other options open to graduate aspiring homeowners who need support include guarantor mortgages and shared ownership.

"The mortgage market has become increasingly competitive and more aware of individual needs, so it is always a good idea to shop around and get the best deal for your circumstances," Ms Harris added.

2008: May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar