Student debt 'unlikely to affect first time buyers'

Having student debt is unlikely to hinder first time buyers when they attempt to enter the property market, according to Firstrung.

The firm has said that despite recent reports that people''s mortgage applications could be affected by their student loans, the average student debt is not going to have an impact when people buy their first house.

Paul Holmes, chief executive officer of Firstrung, said: "I''d say the majority of first-time buyers we deal with don''t come straight out of university and look to get on the housing ladder. That''s highly unusual.

"That may not have been the case in the eighties or the nineties, but certainly where we are now it''s unusual for someone to do a degree, come out, get a job and suddenly find themselves needing a mortgage."

Last week the mortgage company mform.co.uk claimed that student loans will be incorporated into people''s credit files, which would mean more first time buyers would find it hard to secure a loan.

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