British Money to offer graduates mortgage deposit loans
Burgess has committed £50m to help people get on the housing ladder . His support for graduates comes after it was found lenders consider student loans a committed expenditure and so are likely to offer them a lower mortgage – if at all. However those with a 5% deposit improve their chances of securing funds.
Burgess said: “I’m keen to give graduates a ‘leg-up’ onto the housing ladder by providing them with their deposit. It’s near impossible to scrape together £11,000+ – which is five per cent of the average house price in the south east – if you’re having to pay rent and other household costs.
“Deposit loan and mortgage repayments combined will be substantially less than the cost of renting – giving this ‘penalised generation’ the opportunity to invest in an appreciating asset.
“Lenders are denying housing to a whole generation of people through no fault of their own, so it’s time to bring ethics back into lending.“
Borrowers will be offered a competitive APR and free Defaqto-rated five star income protection and Burgess confirms if affordability is an issue, he will accept parents as guarantors.