SPF is offering a bespoke Graduate Mortgage through Scottish Widows Bank, with the ability to borrow up to 100% of the property’s value overcoming the hurdle of raising a deposit.
The Graduate Mortgage is available to those who have been employed for 12 months and who graduated in the last seven years. It is a base rate tracker, which includes an initial discount or a fixed rate, and offers a loan-to-value of up to 100% with additional 2% to cover associated costs, such as stamp duty and legal fees.
The potential to borrow more capital would be available to a graduate on an individual basis, and is facilitated through a guarantor arrangement. Parents, who are individually assessed, can act as guarantors for the portion of the mortgage over and above their child’s earnings, rather than for the whole mortgage. Once the borrower is earning enough to cover the whole loan, the guarantor is released.
Commenting on the new product, Mark Harris, managing director of SPF, said: “More than 53% of graduates are forced to return to their parents’ home when they leave university. But, by seeking advice and taking out a bespoke mortgage, it is possible for them to sidestep the traditional problems of needing a large deposit and not being able to raise sufficient funds to buy their first home.”
