People aged 18-24 are twice as likely to choose a tracker mortgage than any other age group, according to new research conducted by Uswitch.
As part of its mortgage statistics report, Uswitch surveyed over 2,000 homeowners to investigate how homeowners from different age groups were utilising the potential of tracker mortgages.
The research found that tracker mortgages are much more popular for homeowners aged 18-24, as 17.82% took on the risk of fluctuating interest rates influencing their monthly repayments, 13.67 percentage points more than 25–34-year-olds.
Additionally, those 55 or older are the most likely to have a standard variable rate mortgage, as only 6.56% chose to opt for a tracker mortgage product.
When it comes to mortgage repayments, the survey found that, on average, 18–24-year-olds spend £1,390.90 a month, the highest of all age brackets.
This is 59% more than 25–34-year-olds, where the average monthly payment is £874.35 and the second most expensive repayment.
In fact, this difference becomes greater the larger the age gap, as those 55 and older have the cheapest monthly payments, averaging just £763.79 – 45% less than the average monthly repayments for 18–24-year-olds.
Claire Flynn, mortgage expert at Uswitch, said: “Give your finances a health check: a good credit history is essential to getting a good mortgage deal, so be sure to check your credit report for the full picture of all your outstanding debts.
“It’s vital to make sure that all the information is correct, as any mistakes may hurt your chances of securing a loan.
“Try to reduce spending: not only does lowering your spending help save for a deposit, but fewer outgoing payments may also help your chances of being accepted for a loan.
“Review any direct debits or standing orders you have set up and see where it’s possible to cut back.”
She added: “Apply with caution: Don’t be tempted to make multiple mortgage applications just to see what kind of offers you can get.
“Every time you apply for a mortgage, the lender will perform a hard credit check which can affect your credit score.
“Instead, consider talking to a mortgage broker to get a better understanding of what deals are the right fit for you.”
