Mortgages for over 100% of property value are "a good product" for young professionals

Mortgages for more than 100 per cent of the value of a property are not for everyone, but can be "a good product" for young professionals, a firm of independent financial advisors said today.

As young professionals can often expect their income to increase significantly, they are more suited to taking out a 100 per cent-plus mortgage, stated a spokesman for Bestinvest.

Peter O'Donovan commented that some people use the extra 20 per cent to help pay for stamp duty and other administrative costs while others use it to clear existing debt such as student loans.

"Even though the total borrowing they have is the same, the monthly disposable income is less because they [repay] at mortgage rates as opposed to credit card rates," he said.

Graduate Market Trends survey in summer 2007, graduate starting salaries in the UK ranged from £7,735 to £41,000, with the mean average figure standing at £18,744.