18-24 year olds spend over £1,390.90 a month in mortgage repayments – more than homeowners of any other age group – research from Uswitch.com has found.
Overall 18-24 year olds pay a staggering 59% more than 25-34 year olds, who pay on average £874.35 a month.
This comes as yet another blow to the younger demographic, a group that was already struggling to climb the property ladder in the face of the cost-of-living crisis, skyrocketing house prices and stagnating wages.
“We’re having to watch the market closely, as when our current term ends in a few months we’ll likely be paying double”, said Kester, a 31-year-old homeowner from Nottingham.
Additionally, 0.99% of 18-24-year-olds are reported to have monthly repayments exceeding £3,000. While this figure is smaller than other payments in this age bracket, it is far greater than the percentage of other ages paying this amount.
On average, 0.48% of 45-54-year-olds repay over £3,000 a month for their mortgage: the second largest portion from all ages analysed, but still less than half the percentage of 18-24-year-olds.
Luke, a 23-year-old from Southend-On-Sea, added: “We did a lot of research before applying for a mortgage to make sure we were getting the best deal with the lowest rates.
“Beyond that, we’re saving where we can, cutting back on some luxuries – moving back in with our parents before moving into our new home was especially useful to save up for the deposit and mortgage payments.”
The report also revealed that 25-34-year-olds have the longest mortgage terms at almost thirty years (29.44), while those aged 18-24 have a shorter period of 26.09 years.
This will more than likely increase due to the recent introduction of 50-year mortgages in the UK.
Kester concluded: “The best thing for us to do is to keep up-to-date with the market and look for a new mortgage deal as early as possible, as right now it’s more difficult than ever to find a deal that’s a good fit.”
The full report can be viewed here: https://www.uswitch.com/mortgages/mortgage-statistics/.
