Loan changes to have little affect on FTBs

Posted: 30 Jan 2008 11:36:53 GMT


            Property News - Loan changes to have little affect on FTBs

First-time buyers (FTBs) are unlikely to be affected in any major way by new rules regarding student loans.

First-time buyers (FTBs) are unlikely to be affected in any major way by new rules regarding student loans.

It has been reported that the government is to make information on student debt available to credit reference agencies.

The fear is that this will make it more difficult for former students to get a mortgage and take their first step onto the property ladder.

However, despite describing the decision as "bizarre", Firstrung is confident that FTBs will see little difference in their chances of securing a mortgage.

"I would still say that, in the majority of cases, as far as the evidence I've seen, student debt - despite the figures that the media often likes to paint and shock and bore us with - is still relatively low for a student when they come out of university," said Paul Holmes, chief executive officer at Firstrung.

"It's unlikely to hamper students' ability to buy, and secondly, I think quite frankly a lender would dismiss that kind of commitment a month," he continued.

Sky - Unlimted Broadband & TV
BT Broadband - Plus FREE BT Sports
Virgin Media - Superfast Broadband & TV
Gas & Electricty - Save up to £533
Mortgages - Find the cheapest
Home Insurance - Compare 70 providers
Free Credit Check - Check your credit file
Conveyancing - Fast Free quote
Tax Saving Guides - Tips to save Tax