The Scottish Widows Bank First-Time Buyer Graduate report revealed that even for those graduates that succeeded in getting on the property ladder, almost two-thirds bought with a partner.
If they were to split up, 68 per cent admitted they would not be able to buy their partner out.
According to the report almost one-in-10 graduates believed they would never be able to buy a house. For 63 per cent of graduates, unaffordable house prices were preventing them from taking the plunge.
With the average deposit for graduate FTBs currently at £16,218, rising to £30,184 in London, the study suggested that buying a home was likely to remain an unrealistic dream for many.
Murdo McHardy, head of product development and marketing at Scottish Widows Bank, admitted graduates were caught in a real ‘Catch 22’ situation. He said: “Do they wait until they can buy on their own or do they buy with a partner when they are not quite ready? With no exit route in place, graduates need to be fully aware of the size of the commitment involved in buying with someone else.”
The Scottish Widows Bank report revealed debt was also an issue. With the average student loan debt reaching £9,246, one-in-six believed this would prevent them from getting onto the property ladder.
Martin Wade, director at Mortgage Options, commented: “It’s not just house prices, it is the amount of debt graduates run up at university, which reduces the amount they can borrow. That said, these days people are much more open-minded. The smarter ones will buy with other people to get onto the property ladder. Parents are more willing to help out too or will buy with their children as an investment. In addition, lenders have graduate mortgages they can offer or higher income multiples. The market is much more flexible than it was. If you are determined, there are ways of getting onto the property ladder.”
