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Looking to get onto that property ladder and still a graduate? We know that saving up during your university years can be so difficult, taking into account you will probably have a student loan in place, however, whilst it may seem like a pipedream there are ways to increase your chance of getting a post-graduate mortgage.
Let’s see what tips FJP Investment have to help you determine whether getting a post graduate mortgage is realistic or not.
How much will you need to save?
You firstly need to work out how much you will need to save to obtain a mortgage, it is estimated the average mortgage in the UK is approximately £170,000, obviously this will vary depending on areas, so it is certainly worth doing research within the area you are wishing to purchase.
Mortgage lenders on average will require from you at least a 5% deposit, however, remember just a 5% deposit will certainly limit the offer the mortgage lender will lend to you, as the smaller the deposit the less the loan offer will be, a 10% deposit is looked on as a healthier deposit by lenders – of course the 10% is not always realistic when you are a post graduate.
So, crunching the numbers, a 5% deposit is approximately £8,500, while a 10% deposit will require £17,000, a large amount of money at any time for sure.
Is a graduate loan a good option?
One option that may be open to you is the graduate loan, graduate loans tend to have lower interest rates than your normal home loan, however it may allow you to get on that first rung of the property ladder, but you may find that the repayments will not be possible for you.
Therefore, before considering a loan, it is well worth weighing up the debt level of the repayments on top of a mortgage and how it would leave you on a day to day basis for your everyday living, you may well be better off looking at ways to save a deposit.
Ways to save money towards a deposit
It is doable is the first thing, it may not be the easiest thing you will have done but it may well save you a lot of grief in the future.
Firstly, look at your present living situation, is there ways you can save money on this, maybe taking rented accommodation in a student house or all-inclusive student accommodation, whilst you may find this an inconvenience remember the end serves the need at this time and it may well allow you to save that all important deposit.
How about a part time job, many students use this to supplement their income whilst studying, so if you looked at the two scenarios together this could certainly allow you to put away a little extra each week to achieve your goal of getting your first property once you have graduated.
You will have to really want to get on that property ladder and just by doing a couple of the tips above it may well mean that your savings will grow much faster than you thought for that all important deposit. An alternative might be in, investing your way to the top. Partnering up with excellent investment opportunities, might prove to be the solution; such as care home investments.
