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Students seek cheap mortgages to get on property ladder

Date: Wed, 01 Mar 2006

More students are shopping around to obtain cheap mortgages to help them step on to the property ladder.

Newcastle Building Society is warning that purchasing a property is becoming increasingly hard for university graduates as the cost of student debt and house prices rises.

It is estimated by the National Union of Students that course and living costs will cost around £30,105 per graduate – leaving little room for students to save the average house deposit of £23,067 unless they seek out a cheap mortgage deal.

Steve Urwin, head of marketing and new media at Newcastle Building Society, said:
"Student debt is clearly a growing issue which has a knock on effect later in life. Higher tuition fees can only increase the burden on the younger generation and make it even harder for them to enter the property market."

Many students are applying for 100 per cent cheap mortgages or turning to their parents to help fund their first property purchase.


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