Head of Content
Mortgage Advisor & Director
Why can it be tricky for graduates to get mortgages?
There are several reasons why graduates may find it more challenging to get a mortgage, including a small deposit contribution, potentially poor credit history, existing debt and low income. Many graduates are embarking on their new life outside of university with minimal cash, hunting for a graduate job and launching into a new career. Becoming a homeowner is the dream of many graduates, and can help to provide a safe investment for the future.
How to get a graduate mortgage
The good news is that there are specialist lenders who can help graduates to get a mortgage, and as a whole-of-market broker, Teito can help!
Some lenders cater specifically to graduates, offering perks and benefits that will help you to make the most of your new home. Some lenders will provide a larger Loan to Value ratio of 95%, meaning you won't have to save as much for a deposit.
At Teito, we have access to deals not available to the general public. Complete our simple form today to get started!
If you are a professional or vocational graduate
If you have graduated in a course such as law or medicine, you are likely to have less trouble in finding a mortgage. Lenders will see you as lower risk as you have a higher chance of securing employment soon after graduating. Lenders may even offer a mortgage based on a future salary, for example, if you are a junior doctor or law graduate.
You may also find you can access better interest rates than your fellow graduates in other subjects, more flexible repayment options and lower fees.
Should I apply before I graduate?
Assuming you have a guaranteed job lined up for after you graduate, then it should be relatively straightforward to secure a mortgage before graduating. We would recommend, however, that you use an experienced broker to find you a good deal and make the process stress-free while you settle into your new life as a graduate.
What if I am a self-employed graduate?
For self-employed graduates, you may imagine it is more difficult to secure a mortgage, as most lenders require a minimum of two years of trading history. You will be pleased to hear that some lenders do deal with self-employed graduates, get in touch today with one of our advisors to learn more.
How can I learn more?
As a specialist mortgage product, we would recommend using an experienced broker. At Teito, our team of advisors can help you to get the best deal possible on your new graduate mortgage. Complete our simple form to get started today.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
