With university tuition fees set to rise to £3,000 a year from September, future graduates will find it even harder to get on the property ladder as they are expected to leave with debts, according to the National Union of Students, of over £30,000.
Steve Urwin, head of marketing at Newcastle, commented: “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.”
The first product is a 100 per cent LTV mortgage fixed for five years at 5.50 per cent with no higher lender charges (HLCs), a 5 per cent early repayment charge and free valuation up to £410. Also, a five-year fixed guarantor mortgage at 5.00 per cent, which allows parents to act as guarantors for the loan so their children can borrow more. However, the client must be earning at least £15,000 per annum and expect to see a significant increase in their earnings.
Finally, Newcastle has launched a two-year fixed rate offset mortgage at 4.79 per cent where the family can use savings to help make the loan more affordable.
Daniel Clayden, director of Clayden Associates, said: “It’s a big thing for FTBs not to have a higher lending charge. Income multiples of four are the least it could have done as below is of no use.”
