Potential first time buyers 'shunning university'

21-Jun-2007

A growing number of potential first time buyers looking to raise money for their first home are avoiding going to university in order to save the required amounts, it has been advised.

A new survey from Lloyds TSB mortgages has found that one in ten 18 to 24-year-olds have now sacrificed the possibility of further education so they can save money, with a third of the age group saying that tuition fees should be cut for the same reasons.

Owning a home was found to be the number one aim for 18 to 24-year-olds to reach by the time they are 30, ranking ahead of career goals and other targets, with three quarters saying that becoming a homeowner by that age was their main focus.

"Mortgage providers are becoming increasingly flexible to accommodate the changing circumstances of first time buyers, so many of the old mortgage myths no longer apply. Young people should seek mortgage advice before making a decision that could affect their long term future," advised Lloyds TSB mortgage sales director Alison Burns.

But with further interest rate rises widely predicted to occur over the next few months, many buyers are more apprehensive than ever about taking on larger mortgages.

To find out about the different ways of financing a first home, see our section ‘Affording Your First Home’.

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