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Graduate mortgage options still do not appeal to many

Published: Tuesday, 10 July 2007   Category: Life after graduation

Despite a growing increase in the number of graduate mortgage options, financial and social concerns are still seeing many university-leavers opting to remain in rented accommodation long after they have completed their studies

Several big-name lenders are now tailoring a special product to the graduate mortgage sector, with one example being the 102 per cent, deposit-free mortgage on offer from Scottish Widows.

Many graduates are still choosing to shun this option, however, with Amanda Docherty, communications manager for the Edinburgh-based bank, explaining some of the thinking behind such decisions.

"I think in today's market, you don't really have a choice; you have to rent for a certain period of time," said Ms Docherty.

"Unfortunately, that is the thick end of the problem. People are now renting and finding it harder to save for a deposit at the same time as renting.

"For many I think it is a lifestyle choice as well," she added. "A lot of people are putting off buying until they see what the house market does [and] see if it becomes more accessible for them."