From September 2006 universities in England and Northern Ireland will be able to charge tuition fees of up to £3,000 – a 155 per cent increase on the tuition fees paid by students during the current academic year.
The National Union of Students estimates that this year’s university intake cannot expect to graduate without paying £30,105.
The average deposit for a typical first-time buyer home now stands at £23,067, according to Halifax statistics and it is estimated that it will take up to five years to save, putting debt-ridden graduates at a disadvantage.
Steve Urwin, AGM marketing and new media at Newcastle Building Society, said: “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.”
Newcastle Building Society has launched a new range of products aimed at first-time buyers.
The products include:
- A 100 per cent mortgage fixed at 5.50 per cent until 31 March 2011
- A guarantor mortgage which will enable any amount above normal income multiples to be guaranteed by a parent. The loan is fixed at 5 per cent
- An offset mortgage fixed at 4.79 per cent which will enable family members to offset their savings against the mortgage.
Urwin continues: “The Society has launched these three new products to strengthen our range of mortgages specifically designed to help graduates and other first-time buyers. They are also designed to appeal to parents who wish to help their children financially.”
