The combination of rising house prices and high student debt means that many graduates will not be able to get onto the property ladder without financial help, according to industry specialists.

Financial worries mean that nearly a quarter of students starting university this year plan to live with their parents afterwards, according to a survey from high street bank Lloyds TSB, while figures from graduate advisers Prospect reveal the average graduate debt is £9,744.

Scottish Widows is one lender which is providing "graduate mortgages" to help first time buyers who do not meet the requirements for a standard mortgage but have the support of their parents for example.

However, other mortgage lenders – including Northern Rock - feel that graduates should not be trying to buy when they already have substantial debts.

"We currently do not offer mortgages specifically for graduates and have no imminent plans to do so," said Jaqualyn Gill from Northern Rock.
"Our responsible lending policy is designed to ensure that borrowers do not become overcommitted and are able to afford their monthly payments."