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Young people swapping university for homes

Britain's younger generations are turning their backs on a university education in order to purchase their first home, it has been claimed.

According to a survey by Lloyds TSB, one in ten 18 to 24-year-olds have sacrificed going to university altogether in order to save money for a house purchase, while a third of this age group have said that tuition fees should be cut to help them get on the property ladder.

While the research suggests that young people are swapping one large-scale borrowing for another by declining their student loan and taking out a mortgage instead, a personal loan could give them the additional flexibility their finances require, particularly for those who are trying to buy a home while still at university.

"The fact people are willing to forgo their education highlights the importance of homeownership to the younger generation," said Alison Burns, mortgage sales director at Lloyds TSB.

Helen Eagleton, a 24-year-old who is currently in the process of buying her own home, added: "The headlines paint a pretty gloomy picture for first-time buyers and I had just assumed that owning a home was out of my reach unless I made some major sacrifices."

A recent survey by the Co-operative Bank revealed that, having secured a new home, many people take out additional loans to help cover the "hidden costs" of moving, such as stamp duty and solicitors' fees.

Click here to see how much you could save with a home loan from Lombard Direct.

21/06/2007 17:01:44

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