Northern Rock has "no imminent plans" for graduate mortgages

14 June 2006
Following the recent launch of products branded as graduate mortgages by Scottish Widows, Northern Rock has said that it does not plan to follow its rival into the same market.

'Graduate mortgages' are aimed at younger first-time buyers who are trying to get on the first rung of the property ladder while coping with student debts and the strife involved in dealing with serious financial worries for the first time.

The products typically offer 100 per cent of the property value as a loan to the buyer when they have a guarantor to support their application, usually a parent or guardian.

"We currently do not offer mortgages specifically for graduates and have no imminent plans to do so," said Jaqualyn Gill, a spokesperson for Northern Rock.

"We provide all customers with choice and a wide range of competitive products, some of which may be suitable for graduates. Our responsible lending policy is designed to ensure that borrowers do not become overcommitted and are able to afford their monthly payments."

Ms Gill added that Northern Rock's credit check process was "tightly monitored and controlled", which helped to ensure its lending and credit quality "remains robust".

A recent LloydsTSB survey highlighted the financial problems, particularly related to housing, currently affecting students. Nearly a quarter (22 per cent) of current higher education starters said they planned to live with their parents when they finished their degree.

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