University graduates are to be offered an increased income multiplier by Scottish Widows Bank from August 7th onwards.
The lender will now offer customers who fulfil certain criteria up to five times their annual earnings for a home purchase loan, which is higher than the typical rates on offer for the lender's similar products.
A single graduate earning at least £25,000 per annum will be offered up to five times their salary.
A joint graduate offering with a combined earning parameter of between £30,000 and £50,000 will be offered 3.5 times the joint income and a joint graduate mortgage where the combined pairing earns over £50,000 per year can borrow up to four times their annual earnings.
"With the challenges facing today's first time buyers, it is key for lenders to offer realistic solutions to meet the changing needs of the market," said Gordon Bowden, Business Development Director for Scottish Widows.
"Rising house prices and difficulties in saving for a deposit mean that more and more first time buyers are struggling to get that first foot on the property ladder," he continued.
"This enhanced product offering is designed not only to help graduates purchase their first property at current market prices, but also to make repayments affordable by offering stepped interest rates in line with expected salary increases."
The interest rates on the graduate five-year stepper mortgage products from the bank are 5.29 per cent in year one, 5.49 per cent in year two and 5.99 per cent in years three, four, and five.To read more about mortgages, click here.
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