Gap years ditched for mortgages
Mortgages: Gap year rucksacks ditched for deposits
Wednesday, 16, Jan 2008 01:50
Students are prioritising mortgages over gap year travels and would rather save their cash to get on the property ladder.
A survey of British students has exploded the myth that most are irresponsible with money, revealing instead that rising property prices have prompted them to ditch travelling in favour of buying their first home.
Research found 42 per cent of students had already begun to put money aside for the deposit on their first home - more than twice the amount who were saving to go travelling or to buy a car.
Meanwhile, the research by Abbey Mortgages also found that past graduates who had financed a gap year in the past ten years would not have done so today.
With the hindsight of seeing property prices soar, they would have used the cash for a first home.
Nici Audhlam-Gardiner, head of Abbey Mortgages, said the harsh reality of high house prices had clearly hit students hard.
"They now need to weigh up the benefits of travelling against jumping straight into a career and being able to afford to get on to the property ladder," she added.
"It's certainly encouraging to see that many university students are sensibly putting money aside for that important deposit on their first home."
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