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Mortgage service to aid recent graduates

Endsleigh Independent Financial Tailoring and Scottish Widows Bank have introduced a mortgage service for recent graduates.

Cheltenham-based Endsleigh says it has launched the product because young professionals often find it difficult to get a mortgage shortly after they graduate.

The IFA says the mortgage will aim to solve some of the problems faced by young people with little credit history.

The firm says many graduates have lived at several addresses while at university and often are not on the electoral roll – factors which can act against them when trying to get a mortgage.

The Scottish Widows graduate mortgage offers up to 102 per cent loan to value, enabling graduates to cover other expenses, free mortgage valuation up to £250 and a further £150 towards legal fees.

The base rate tracker has an initial six-month discount of 0.25 per cent below the Bank of England&#39s rate, giving a current rate of 3.75 per cent. The rate then rises to base rate plus 1.25 per cent, giving a current rate of 5.25 per cent.

Applicants must be over 21, educated to degree level at a recognised UK university, have graduated in the last five years, been working on a permanent basis for at least 12 months and not serving a probationary period. It is available nationwide via Endsleigh&#39s phone-based advice service.

Head of corporate communications Stuart Wartalski says: “The Scottish Widows Bank graduate mortgage demonstrates our commitment to young career people and we are delighted to add it to our product range.

“We have designed our service to be as user-friendly as possible but taken into account the need for close regulatory control of such a scheme.”

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