Graduate Mortgages
With a graduate mortgage, you have to hold a degree from a recognised UK university and match certain age criteria, which vary from lender to lender. Some lenders may require you to apply for a graduate mortgage within five years of leaving university, while others may not have a time limit. Graduate borrowers can usually choose between a fixed rate mortgage or a variable mortgage, which means you can either fix your repayments
at a set level or opt to have your repayments rise and fall in line with interest rates or your lender's standard variable rate (SVR) each month.
Professional Mortgages
For those of you who work in certain professions, otherwise known as Key Workers, you could apply for a professional mortgage. The following professions are generally eligible:
- Lawyers/solicitors (not all lenders will consider barristers)
- Pharmacists
- Accountants
- Chartered surveyors
- Optometrists
- NHS staff (except doctors and dentists)
- Teachers
- Police and community support officers
- Firefighters
- Prison officers
- Probation service staff
- Social workers
- Psychologists
- Therapists employed by local authorities or the NHS
- Certain Ministry of Defence staff
As is the case with graduate mortgages, professional mortgages are unlikely to be offering LTVs in excess of 95% in the current climate. Generally speaking, professional mortgages can offer better rates than those offered on graduate mortgages, as borrowers in the eligible professions tend to have high future earning potential.
As a key worker, you might also be interested in the Government Housing Schemes available to you.
Pros and Cons of Graduate Mortgages
- Get you on the mortgage ladder earlier.
- Allow you to buy better property.
- Not always the most competitive interest rates.
- Risk of over-stretching if career does not map out as planned.
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