Those who have graduated from university this time will be thinking about their next steps: getting a job, and finding a place to live. But how hard can it be getting a mortgage with student debt hanging over you?
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Financial experts have warned about the difficulties young people could find themselves in, in trying to secure a mortgage from a lender, while they have student debts of around £26,000.
It depends on the bank or individual lender, but most creditors will take into account any previous loans a person has when they are deciding whether to loan them a mortgage, as they want to be secure that that person can pay the money back.
As the majority of people who are trying to get a foot onto the property ladder have some form of student debt, it is likely that most banks won't outright refuse them a mortgage, but may limit the amount they can borrow.
To ensure you'll be able to get a mortgage when the time comes, make sure you appear attractive to lenders (we don't mean doing your make-up and getting a haircut).
You need to come off as 'stable' - meaning being in employment for a period of time, and get on the electoral roll. If your partner has a bad credit rating, don't get a joint account with them: this will drag down your rating too.
Pay off all your credit cards to minimise the number of debts you have, and if you don't use any credit cards, cancel them. It looks bad on you if you have access to too much credit, even if you don't use it.
Finally, you'll need to save up for a deposit. Some mortgages only need a five percent deposit, though if you can afford it, you should look for one that requires 10 or 15 percent instead. This gives you a wider range of mortgages choices and remember - you're going to have to pay it all off eventually!
Emily Bancroft
Tagged in Money Advice Home & Garden