Graduate Mortgage Tips

Graduate Mortgages Tips

Below are 7 tips for graduates looking to get a mortgage. See the main Graduate Mortgages page here.

See the main Graduate Mortgage page and Bad Credit Graduate Mortgages too.

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1. Open a Lifetime ISA

The Lifetime ISA, or LISA, is a must for anyone saving a deposit for their first home.

The biggest benefit is that the government will give you a 25% bonus on everything you save into it each year. That means for every £1,000 you save, you get £250 from the government.

You can save up to £4,000 per year into a LISA which might be achievable in your first job after graduation, or if you are on a graduate scheme.

You need to have the account for a year before you qualify for the bonus, so the sooner you open it the better.

The Lifetime ISA replaced the Help to Buy ISA last year.

Graduate Mortgage Tips

2. Keep away from car finance

One of the biggest mistakes I see graduates make when trying to get onto the housing ladder is taking out car finance.

Every pound that you are committed to paying for car finance each month means that’s a pound you don’t have free to fund a mortgage. Banks and building societies know this. That’s why the higher your monthly credit commitments are, the less they will lend,

This also applies to credit card balances, buy now pay later, and other loans too.

If you absolutely need to finance a car, you need to understand that the more expensive car you buy (or lease), the more this will count against you when applying for a mortgage. If buying your first house is a priority, scale down on the car for now. Would you rather have a flashy car parked in your rented flat parking space, or a modest car on the drive way of a 3 bed semi that you own?

Besides, once you get the mortgage you could then look at upgrading your ride anyway!

3. Keep your credit clean

Having a bit of credit that is up to date and always paid on time is not a bad thing per se. What is an issue, is if you don’t make your payments on time.

Lenders will see this when they run a credit report on you, and they may reduce what they will lend to you, or lend you nothing at all.

You might have some options even if you do have bad credit, but the mortgage is likely to be more expensive.

4. Check your credit report

Seeing your own credit score before the bank does gives you the opportunity to get on the front foot. Sometimes the credit agencies make errors. By being prepared you can correct any errors in advance.

I think CheckMyFile is the best place to get your credit report. The report is really easy to read, unlike some (ahem, Experian), and they actually show multiple agencies on one report.

Once you have the report, check that the address history is up to date and any financial associations are correct. If you had a joint account with an ex, or a flat mate, their bad credit could become your bad credit unless you get disassociated from them.

Graduate Mortgage Tips

5. Keep organised

Make sure you are saving your payslips, bank statement, and have proof of your deposit. You’ll need to provide these later down the line and any delay could see you miss out on the property you want.

6. Get advice well in advance

A good Mortgage Broker will be happy to help you long before you are actually ready to buy. I sometimes speak to people over a year before they are going to have enough deposit to apply for a mortgage. But I leave them knowing exactly what they need to do and what might be realistic for them.

Don’t leave it to be a surprise as to whether you can get a mortgage or not after you have put an offer in on a house. Speak to a pro well in advance. They are probably cheaper than you think, if not free.

Graduate Mortgage Tips

7. Be disciplined

Set what you want to save each month, and put that aside the day you get paid. Maybe into a LISA! Calculate how much deposit you need to save, decide how long you want to save it over, do the maths and pretend you earn that much less per month than you actually do.

See the main Graduate Mortgage page and Bad Credit Graduate Mortgages too.

Graduate Mortgage Tips
Graduate Mortgage Tips
Alex P
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Jamie was supportive all the way through my experience with my first time buyer application. Jamie responded very quickly and always had time for me. I would recommend Jamie 100% certainly helped me out and still helps me out even though the mortgage has gone through. Top quality service. Thank you
Graduate Mortgage Tips
Kylie X
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100% recommend Jamie as a mortgage advisor. He is very rapid with responses and cares about his job and your interests and not just getting the job done. He really took his time and we built a good rapport making everything a really smooth process. He explained everything thoroughly and was always there if we had any questions. We will definitely contact Jamie for remortgaging. Thank you!!
Graduate Mortgage Tips
Dan G
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Jamie was extremely helpful right from our first conversation. He listened and made sure he did all he could to get me a much better deal than what I was already on. He’s saved me £80 a month on my mortgage payments which is really a huge saving. A really professional and quick service - Within 2 days I had a new mortgage deal with no hassle as Jamie does all the leg work for you. I would definitely recommend for anyone looking to get a better deal, Jamie will definitely be able to get you that.
Graduate Mortgage Tips
Reece L
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Brilliant service from Jamie. Had our re-mortgage sorted within a week. No pressure was put on us to re-mortgage with the option he felt best suited to us opposed to our preferred re-mortgage option, simply stated the facts. Overall nice, friendly and will definitely use again in the future.
Graduate Mortgage Tips
Adrian B
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Jamie Thompson recently saved me £160 per month on my mortgage with no fees. I would recommend his friendly efficient and professional Services to Anyone looking for a mortgage or remortgage. Jamie has helped a number of our friends who have all commented on how good he is at what he does. Thanks Jamie.
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