Graduate mortgages

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

Graduate mortgages can have several different aspects: some banks 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 too, without needing to save up for a deposit first.

Also, because of your earning potential some banks may be willing to offer higher income multiples than normal, even on 100% mortgages . With house prices so high, this can make all the difference when you are trying to buy your first home.

Many banks will also offer a graduate mortgage with very low rates in the first years of the mortgage term, so that your mortgage is affordable while you are on a lower income, and rises as you earn more. This can also give you time to pay off your student debts while also paying the mortgage.

If it proves impossible to find the graduate mortgage you need based on your income alone, another option could be a guarantor mortgage . With this type of scheme your borrowing will be based on your parent's income, and may also combine your own as part of the affordability measure. Once your own salary is sufficient to cover the whole loan your parents can be relieved of their legal obligation.