Student debt “unlikely” to affect first time buyers

Having a student debt is “unlikely” to restrict students’ abilities to make their first steps onto the UK property market, one expert claims.

Financial solutions specialist Firstrung said that despite recent reports that student loans will be incorporated into people’s credit files, this is not likely to result in loans being turned down.

Paul Holmes, chief executive officer with company, said: “It’s unlikely to hamper students’ ability to buy, and secondly, I think quite frankly a lender would dismiss that kind of commitment in a month.”

He added that despite the figures the “media often likes to paint and shock and bore us with”, the reality of student debt is quite low when they come out of university.

However, although students’ ability to buy property is unlikely to be hampered, Firstrung expect finances to be “raked over a lot more intensely” due to the current economic climate.

Last week, mortgage company mform.co.uk warned that that more first-time buyers will be turned down for loans as student loans will be incorporated into people’s credit files.

Tags: shock, week, market, lot, Firstrung expect finances, mortgage, student debt, debt consolidation