How to get a mortgage as a graduate (first-time buyer guide)

Can a graduate get a mortgage?

Yes—being a recent graduate doesn’t automatically rule you out. Lenders mainly want evidence that you can afford the repayments and that your application is low enough risk for them to lend.

For many graduates, the challenge is that some of the “usual” building blocks are still developing, such as:

• A smaller deposit (or none saved yet)
• New job status (including probationary periods)
• Student loan and other debts (e.g., overdrafts or credit cards)
• Limited credit history
• Entry-level income compared with what lenders typically prefer

The good news is that there are routes that can make your application more straightforward—especially when you’re clear about your finances and you choose the right mortgage type for your circumstances.

What lenders typically look at when you’re a graduate

Even if you’re early in your career, your application will usually be assessed on the same core factors as any first-time buyer:

1) Affordability

Your mortgage must fit comfortably within your budget. Lenders will consider your income, outgoings, and existing commitments.

If you have student loans, overdrafts, or credit cards, these may reduce the amount you can borrow. That doesn’t mean you can’t get a mortgage—it means you may need to plan for a smaller loan, a larger deposit, or a product with terms that suit your situation.

2) Deposit and loan-to-value (LTV)

A bigger deposit can improve your options. If you don’t have a large deposit yet, you may still be able to buy using:

• First-time buyer options (where you qualify)
• Government-backed schemes (where eligible)
• Family support structures (where appropriate)

3) Employment status and income stability

Some lenders are more comfortable with certain job types and timeframes. As a graduate, you may be in one of these situations:

• You’ve just started a new role
• You’re on probation
• Your income is lower initially but expected to rise

Being able to evidence your contract type and likely income progression can help, but it’s not something you should assume will be accepted—this is where specialist guidance matters.

4) Credit history

A limited credit file isn’t unusual after university, but it can affect how lenders assess risk. Simple steps can make a difference before you apply, such as:

• Keeping existing accounts in good standing
• Avoiding new credit applications right before submitting
• Ensuring your address and personal details are consistent

Mortgage options that may suit recent graduates

There isn’t a single “graduate mortgage” product—lenders decide case by case. However, the following options are commonly relevant for first-time buyers who are early in their careers.

Shared Ownership

Shared Ownership can be a practical step onto the property ladder if you qualify. You buy a share of the home and pay rent on the remainder, which can reduce the upfront deposit required compared with buying 100% outright.

Deposit support schemes (where eligible)

Some schemes are designed to help buyers with smaller deposits. Eligibility rules vary, so it’s important to check what applies to you and your target property.

Family-assisted mortgages (with the right structure)

If you have family support, there are a few ways it can be used. The key is choosing a structure that matches your situation and understanding the implications for everyone involved.

Common examples include:

• Guarantor mortgages: a family member agrees to cover payments if you can’t.
• Joint Borrower Sole Proprietor (JBSP): another person helps with repayments for a defined period, without necessarily sharing ownership.
• Family-gifted deposits: a gift intended for the deposit (with the right documentation).

A broker can help you understand which route is most suitable and how lenders typically want the paperwork presented.

If you don’t have a big deposit yet: what you can do

If your deposit is still building, your best strategy is usually to improve the factors lenders care about most:

• Increase savings where possible (even a modest deposit can open doors)
• Reduce high-cost credit before applying
• Keep your application “clean” by avoiding major financial changes during the process
• Consider whether a scheme or shared ownership approach could reduce the deposit burden

If you’re unsure which path is realistic, speak to a broker early—waiting until you’re ready to exchange can limit your options.

Can you use stipend or other income?

Some graduates receive income that isn’t a standard salary—for example, a stipend during training or an internship arrangement. Whether this can be used for affordability depends on the lender’s rules and the evidence available.

If you’re relying on non-standard income, it’s worth discussing with a mortgage broker so your application is prepared in a way that lenders can assess.

How a mortgage broker can help a graduate application

A specialist broker can be especially valuable when you’re early in your career because they can:

• Match your situation to lenders that are more likely to consider your employment and financial profile
• Help you choose the right mortgage type (standard, scheme-related, or family-assisted)
• Reduce the risk of wasted applications by preparing the information lenders expect
• Explain the trade-offs between options so you can decide what fits your priorities

If you’re applying for the first time, this guidance can also help you avoid common pitfalls—such as submitting an application that doesn’t reflect how a lender will assess affordability.

Next steps

If you’re a graduate planning to buy your first home, the most important thing is to get your application strategy right from the start—particularly around deposit, employment status and how debts are treated.

If you’d like to talk through your options, make an enquiry and we’ll help you understand the routes that could work best for your circumstances.