Graduate mortgages are 'huge help' to first time buyers

05-Jul-2007

Graduate mortgages are providing a great deal of help to many first time buyers due to the fact that they do not require a deposit, it has been advised.

Scottish Widows, who provide a 102 per cent graduate mortgage, has said that the absence of a deposit has helped more buyers cope with multiplier issues.

However, the market is still something of a niche area and is geared towards those with higher job security, though a student with debts will not automatically be excluded, the lender added.

"If you can't save a deposit, if you're looking to buy a property at £160,000 with a ten per cent [deposit] you're looking at saving £16,000, and then on top of that you've got all your other costs, buying the house, the legal costs, the furniture, overheads," noted Scottish Widows communications manager Amanda Docherty.

"We also have a guarantor option so if someone's salary doesn't give them the right amount they need to borrow for the property price, they might be able to look at a family member to give the top-up guarantee amount," Ms Docherty added.

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