The Graduate Mortgage allows individuals to borrow up to 100 per cent of the property’s value plus a further 2 per cent to cover associated costs such as stamp duty and legal fees.
It is open to those who have graduated within the last five years, and is based on a base rate tracker with a 0.25 per cent discount off the bank's base rate for the first six months. Thereafter, it tracks at 1.25 per cent above the bank’s base rate, which currently stands at 4.0 per cent.
Gordon Bowden, business development director of Scottish Widows Bank, said: "By offering this 102 per cent mortgage we are aiming to help graduates onto the property ladder quickly. Traditionally on leaving university graduates do not have a deposit and struggle to enter the property market. While saving money for a deposit, prices may continue to increase and the property ladder can remain just out of their grasp. With this mortgage we hope to give them the leg up necessary to help them realise the dream of their first home.
"The introduction of our Graduate Mortgage demonstrates our commitment to offering consistently competitive products and builds on our successful Professional and Flexible Mortgages."
However, the loan is subject to a close relative of the applicant acting as guarantor.
