Scottish Widows: Student debt 'cripples house-buying'

14 November 2005
Graduates are so debt-ridden they cannot afford to buy their own homes, says Scottish Widows Bank.

A survey by the bank revealed half of graduates have so much student debt, it seriously affects their house-buying prospects.

Two-thirds of UK graduates under 30 said they still cannot afford to buy their own home and one in five say it could be another ten years before they could think about buying property.

"Not everyone can rely on friends and family to help them buy their first house and there is a real need for more assistance from both lenders and the government when it comes to first-time buyers," said Murdo McHardy from Scottish Widows Bank.

Four in ten graduates have managed to buy a home - but only because they were given money by their family or friends.

Total student debt owed at the end of last year stood at £14.6 billion -an increase of 18.7 per cent on the year before.

To read more about Mortgage News, click here.

track© Adfero Ltd