As a lender, Skipton Building Society has become increasingly aware that student debt is making it difficult for graduates to obtain a first mortgage. The CML’s research confirms this, predicting that graduates already struggling to get onto the housing ladder may delay buying a property for up to nine years.
To combat the increased levels of debt graduates are facing and the implications this may have, Skipton Building Society has joined forces with North Yorkshire County Council and the University of Leeds to launch a Scholarship Scheme. The Scheme provides young people in Yorkshire, who demonstrate the potential to study at degree level, with the financial support they need to progress to higher education.
Guaranteed to run for five years, it will provide scholarships for pupils to carry on studying after their GCSEs and to go to university. The Scheme specifically targets applicants under the age of 21, with parents who have a joint taxable income of up to £12,500, living in the Craven and Richmondshire areas.
Commenting on the move, John Goodfellow, chief executive and director of Skipton Building Society said: “Following government proposals for higher education, students - now more than ever - are requiring financial support. Organisations, like the Skipton, should realise the potential of raising the educational standards of the work pool from which they recruit and should endeavour to reduce the amount of debt lower income students build up.
“If predictions are correct and students are leaving university with debts of up to £21,000, it can only become more difficult for graduates to enter the mortgage market. Our Scholarship has two benefits – helping to reduce the amount of debt incurred, by assisting with costs; and enabling students to build a career path which will lead to higher incomes in the future.”
