First-time buyers ‘facing debt problems’

Figures compiled by Scottish Widows show that thousands of would-be first-time buyers in the UK are finding property purchases unaffordable and existing debts are now a major cause for concern.

The latest study shows that around a third of graduates cannot save enough money for a mortgage deposit and one in ten are convinced they will never have enough money to get on to Britain’s housing ladder.

Richard Clark, head of product development and marketing at Scottish Widows Bank, said: “This year’s report reveals that the situation really is getting worse for graduates.

“First-time buyers are struggling to save for that deposit, and recent interest rate rises are acting as a further deterrent.”

The Bank of England has increased the cost of borrowing five times in the past year, making debt management problems worse for millions of homeowners and credit consumers across the country.