"Many alternatives" for first time mortgages
Posted: 27 Jun 2006 14:24:17 GMT
There are "many alternatives" for first time mortgage buyers according to Julia Harris, a mortgage analyst at moneyfacts.co.uk.
There have been a number of new exclusive graduate mortgages unveiled onto the market recently claiming to help graduates with the well-known problems of being unable to afford a deposit for a mortgage or keep up with the repayments.
The new mortgages offered by most high street banks give a no deposit requirement, 100 per cent loan to value and good income multiples.
However, if the exclusively graduate mortgages are compared with other deals on the high street now it becomes clear that they do not differ very much.
"Equally competitive and suitable deals can be found from other providers, designing products to meet a much wider and still-demanding first time buyer market, in many instances requiring similar features to graduates," says Ms Harris.
This demonstrates that graduates are not necessarily restricted to graduate only mortgages and should still shop around.
Ms Harris emphasises that it is important that graduates do not fall into the trap of borrowing more than they can afford based on the prediction of higher future earnings.