Growing Student Debt may Affect Future Mortgage Approvals
Growing Student Debt may Affect Future Mortgage Approvals
With the government's recent announcement that tuition fees could leave students with debts in excess of 30,000, it is feared this burden could see future generations finding it impossible to raise a deposit or afford mortgage repayments.
Currently the average first-time buyer has to wait until they are 37 years old before they can afford amortgage of their own, and this age is now set to rise due to increasing student debt.
Seeking help from parents or grandparents is becoming increasingly popular with older generations more willing than ever to pass on an early inheritance' so they can see their loved ones enjoy some independence by buying their first home.
If sufficient savings or income isn't available, family members could look toequity release to help the younger generations. If they are aged over 55 and own their own home, and that home has sufficient equity in it, they could release some of that equity as tax free cash. There are a number of ways of doing this, either via a lifetime mortgage or a home reversion plan, and a specialistequity release adviser will provide quality guidance on the best plan to choose according to specific needs.
And once the deposit is raised by whatever means, taking advice from a whole of market mortgage adviser is the next step. This will ensure the very best deal is achieved that will save the borrower money in the long run. The mortgage adviser will also help withmortgage planning into the future to make sure payments continue to be affordable ongoing, and will advise on a range ofmortgage payment protection plans to protect the payments should regular income cease.
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.