With the average first-time buyer currently having to wait until they are 37 years old in order to secure their first home, current first-time buyer hurdles may look high enough.
However, with the size of average student debts set to rise this could compound the problem.
Experts point out that the obligation to service student debt could impact significantly on the amounts graduates can borrow.
For example, a single person earning £35,000 a year, but having to pay £150 a month to the student debt company, could see the maximum mortgage amount available to them reduce from £168,000 to £139,000 as a result of their debt commitment, according to advisers Trinity Financial Group.
Aaron Strutt, a broker at Trinity Financial Group, said: “Many students will not be aware that their loan will reduce the amount that they can borrow by such a large amount.
“Many lenders now base the amount they will lend on an affordability calculation, which means that loans and credit card repayments are all taken into consideration. Higher debts will simply mean that it takes students longer to pay off their loan and that they will have to wait longer to get on the property ladder.”
Bernard Clarke, of the CML, said: “Student debt is taken into account by some lenders, but it may also affect demand for mortgages. Some students may be more reluctant to take on mortgage commitments if they end up with more debt to complete their degree in future.”
