Student loan lending figures in The Times.
Figures calculated in The Times on Saturday show the problems many students face as they try to get a mortgage after university.
Story below:
"Many lenders are already factoring in student loan repayments when they calculate whether or not a mortgage is affordable, but with tuition fees set to increase dramatically, a large number of first-time buyers will be saddled with university debts for many more years, restricting their ability to get a mortgage for longer. The impact of student debt is already significant.
Calculations by Aaron Strutt, a mortgage broker at Trinity Financial Group, indicate that a borrower with an income of £35,000 would be making student loan repayments of £150 a month, deducted from his or her salary. He says that this loan repayment would restrict the amount that could be borrowed from Halifax by £29,000, from Yorkshire Building Society by £21,000, from HSBC by £20,000 and from Santander by £13,000.
The difficulties that first-time buyers face have implications for the housing market as a whole. The FSA has acknowledged that its planned regulations could lead to falls in house prices, which are already wavering. The latest house price index from Halifax shows that prices dropped 1.2 per cent in the three months to October, though some monthly indices have shown increases."
November 15, 2010
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