In Scottish Widows’ survey of graduate first-time buyers (FTBs), debt is driving many to buy a home jointly with a partner, but over two-thirds would not be able to buy them out if things go wrong.
“For graduates to stand a chance of getting on the housing ladder, then both lenders and the government need to work hard to develop products that suit their needs,” said Murdo McHardy, head of product development and marketing at Scottish Widows Bank. “Increasingly graduates are having to find different ways of getting on the ladder through buying with other people to relying on their parents to put them up while they save.”
The findings come as the Council of Mortgage Lenders (CML) claims that FTBs are having to borrow more money to get onto the housing ladder than ever before.
Graduates are already hindered by large student loan repayments when they start looking for property, with many hoping to clear debt before they move into a home of their own.
However, Mr McHardy said that there were other ways that graduates can get onto the housing ladder, such as mortgages with a loan several times an individual’s salary.