People who are saving up for a house deposit are putting aside around £2,000 per year less typically if they are still paying off a student loan, compared with those without education debts, according to research for a bank.
The savings gap was highlighted by Barclays, which found deposit savers with outstanding student debt were putting away £310.00 per month on average.
People who were saving up but did not have a student loan saved £473.70 per month – or an extra £163.70, adding up to an additional £1,964.40 per year.
More than two-fifths (44%) of people with student loans said the debt makes it harder to be financially stable, with 41% saying their repayments make it harder to save for a home, according to the Barclays property insights report.
The bank is also seeing signs in its own data that more first-time buyers are targeting homes at “nil rate” stamp duty thresholds below £300,000. Stamp duty applies in England and Northern Ireland, with separate property taxes in Scotland and Wales.
Barclays mortgage data shows that properties priced at under £300,000 made up 68.5% of first-time buyer purchases in February 2026, compared with 60.9% in February 2025.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Rising external costs are reshaping how the UK approaches homeownership.
“Student loan repayments are slowing deposit saving for many aspiring buyers, while volatile energy prices are forcing households to think much harder about the long-term running costs of their homes.”
Many mortgage lenders have increased their rates or withdrawn products in recent weeks. The conflict in the Middle East has led to changing expectations for financial markets. Swap rates, which are used by lenders to price mortgages, have increased.
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Mr Patel added: “Homeowners are understandably concerned about rising fixed rates across the market, but it’s important to remember that there are options available.
“You can typically lock in a new rate 90 days before your end of term date with your existing lender –-or up to six months out if you are looking at moving lenders. This can provide peace of mind for those who want to protect themselves against short-term volatility, whilst planning ahead.”
A survey of 2,000 people across the UK was carried out by Opinium Research for Barclays in March.
