I feel sorry for students who will have to pay up to £9,000 a year to go to university. I am not sure I would have studied for a degree if I had known I would be paying £27,000 for three years’ course fees – and that is before I’d
I know how hard it was to pay off my £10,000 student loan. With most students set to come out with huge debts I wonder if getting a mortgage will be a priority.
It is likely that the average age of first-time buyers will rise from and more parents will feel under pressure to help their kids.
Lenders already take student loan debt into consideration and now that the market is moving towards the affordability model, banks are likely to take a dim view on such huge levels of debt.
Students will be paying back around 9% of their salary when they earn over £21,000, but this is a big chunk of their wage. Surviving on £21,000 a year is not easy.
Many people with a property and a degree have benefited from them at a time when life has been easier. Degrees were free and mortgages readily available. This is no longer the case and day-to-day life is set to get harder.
Many take the tough view that students should work harder and pay more, and also save a bigger deposit, even though they did not have to. This doesn’t seem fair. With just four 95% LTV deals available at the moment, the market needs time to recover. Maybe in a few years lenders will offer mortgages designed for students.