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Mortgages for graduates

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 9, 2023

Mortgages for graduates

As mortgage brokers, we have a few mortgage providers lending a graduate mortgage. We often get asked about mortgages for graduates, most lenders we have on our system will be able to offer you a graduate mortgage.

Constitute financial advice today. Mortgage advice is free with no obligation. Mortgage brokers and our mortgage lenders can save you time, and money and find a graduate mortgage to suit you.

Use our online mortgage calculator as a guide for your monthly repayments now

We are expert graduate mortgage brokers

We have access to over 200 lenders in the UK to get you the best rates

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Getting the best graduate mortgage & advice

On the high street don’t expect to see many headlines about a”graduate mortgage” – very few mortgage lenders really favour graduates by offering them special products.

However, there are a few mortgage lenders that do and they cater for both those who just graduated from university and those who have never graduated.

Some lenders have no expiry period so you can still qualify if you graduated 15 years ago.

Our customers are often looking for lenders that will accept them regardless of their…

  • Insufficient deposit
  • Poor credit history
  • Massive student loans and large overdrafts
  • Income at entry level
  • You could even be based on a job that they were offered, but are not due to begin for a few more months

All of the above is possible under the right circumstances.

Constitute financial advice and mortgages for graduates today. Our mortgage advice is free of charge. We will also help with your mortgage application.

Our mortgage advice bureau brokers have years of experience in arranging graduate mortgages. This is true for any home or property. We receive enquiries from customers looking for exclusive graduate mortgages, guarantor mortgages from HSBC, Natwest, Britannia, and HSBC. This is usually because they are the ones people bank with. But it’s important that you remember You don’t have to limit yourself to just one lender.

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Graduate mortgages: Benefits

Some lenders are flexible in their selection of graduates. They may also offer other benefits.

  • Lower rates and Discounts!
  • Lower Deposit: 95% Graduate Mortgages & Family-Assisted Graduate Mortgages
  • Larger loan amounts: Higher-income multiples and Guarantor options

Graduates of professional schools may be eligible for a mortgage

A recognised qualification, such as a law-school graduate, can make it easier to borrow on a mortgage. This is because the qualification provides a level of security, including the security of income, career advancement, and sustainability. Lenders are more likely to approve applications and offer more flexible lending criteria, such as higher loan amounts based on future earnings or better deals. Professional mortgages are also available to many graduates.

  • Lower rates and fees
  • Higher loan amounts
  • Flexible repayment options
  • Guarantor and family-assisted mortgages
  • With some lenders, a smaller deposit is possible

Complete a form to make an inquiry. To complete a full mortgage application

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Are you looking for a mortgage loan before you graduate? It’s not a problem

If you are about to graduate and will be starting a new job within the next few months, a lender may offer you a job mortgage now. They will consider your future income and take into account your past earnings – as long as you have or will get a contract at the application.

New self-employed professional mortgages

You may be asked by lenders to trade for three years after you graduate if you are self-employed. We have lenders who will accept you even if your credit score is not perfect.

How do I apply for a graduate mortgage?

Fill out the quick form below to send us an enquiry or to submit an application. Contact us today if you need immediate assistance.

Mortgage schemes for graduates

Graduates can take advantage of mortgage programs.

Graduates will find government schemes are great for helping them get on the housing ladder. Because schemes allow for smaller deposits, they can be tailored to people with lower incomes or those who are newly employed.

These two schemes are especially useful for graduates:

  • Equity Loans for Help with Buying
  • Part ownership

Graduates can get a help to buy equity loan

For those who have just graduated, Help to Buy Equity Loans are a great option. The government can lend up to 20% of the price of your home. However, there are some restrictions. Your home must be new. A 5% deposit is also required.

The scheme will allow you to obtain a mortgage for just 75% with your 5% deposit and the 20% government equity loan. The equity loan is interest-free for five years.

You may be eligible for an equity loan up to 40% if you are a London resident.

Learn more: How to Get Equity Loans Explained.

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Graduates can get a mortgage in shared ownership

A great way to purchase your first home as a graduate is through shared ownership. You will only have a small percentage of the home you purchase, usually between 25 and 75%. The remainder of your home will be rented to you.

As you save money, you can increase your share of the home. If your finances permit, you can increase your share to take full ownership.

When you are just starting a new job but don’t have enough income to buy a full-time home, sharing ownership can be very useful. You can also increase your savings and income by sharing in the home. You might need to begin earning an entry-level income after graduation.

When compared to getting mortgages for full property value, sharing ownership is often easier to pass. Because you are only purchasing a portion of your home, your income requirements and affordability requirements will be much lower. This is a great way to buy your first home if you are a recent graduate with a limited budget.

Graduate in a professional field

A degree in a particular profession may make it easier to obtain a mortgage than borrowers from other areas. It may be easier to obtain a mortgage if you have a degree in medicine, law, or another similar profession.

You have a high chance of getting a job if your qualifications are recent. Lenders assume that you will stay in the same profession for many years so paying a mortgage won’t be a problem. Because a degree in medicine or law takes many years, it is unlikely that you would want to move elsewhere.

Lenders may view you as a low-risk applicant and approve you in situations where they wouldn’t otherwise. You may be eligible for preferential rates from some lenders.

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Will graduates need a credit check?

Lenders will perform a credit check as part of your mortgage assessment, this is part of a lender criteria. This can be difficult as you may not have had any credit other than your student loan. Although student loans won’t affect your credit score negatively, credit insufficient can.

A lack of credit is the same as having bad credit. Lenders may not be able to evaluate your financial history and could decline your application. If you have taken credit, you should have a credit rating.

It’s better to verify your credit history before you apply for a mortgage. Graduate mortgages are more complicated than those for established borrowers.

You can get a better idea of potential problems by checking your credit file before you apply to a lender.

Graduates and applying to different mortgage lenders

It doesn’t have to be difficult to get your first mortgage. We have helped many students get mortgages, and we can help you navigate the process. An experienced broker can help you get your first mortgage approved.

There are many options available. It is important to choose the best one for you. It is equally important to choose the right mortgage lender.

A mortgage is the most significant financial decision you will make, so it makes sense to get a professional opinion. Moreover, a good mortgage can help you save thousands over the term of your mortgage. A poor mortgage can lead to you losing a lot. If you approach a lender who isn’t right for you, this could happen.

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We are experts in graduate mortgages & advice

Advisors are often used by even experienced property buyers. This is why it is essential for first-time buyers. Although many first-time borrowers think they will get preferential treatment by visiting their bank, this is not always the case.

Advisors will evaluate the market and compare hundreds of lenders to find the best deal for you. Your bank will never show you any of their deals. It’s difficult to determine if you are getting a good deal.

Contact us today and we will help you find the best way to get a mortgage.

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