Millennials pay more on mortgage than older borrowers
Millennials have the highest monthly mortgage repayments of any age group, at £908 vs £430 for the over-55s, according to broker, L&C Mortgages.
And they are, perhaps not surprisingly, cautious in terms of the deals they choose.
Nine in 10 (92%) 18-34 year olds have a repayment mortgage deal, so they are gradually chipping away at the capital. This compares to just 68% percent of over 55s, may of whom have a more risky interest-only deal.
Younger borrowers have also protected themselves against rising rates, with almost seven in 10 (69%) opting for a fixed rate mortgage, much higher than the third (35%) of over-55s who have opted for a fixed deal.
A quarter (25%) of millennials have already remortgaged to get a better deal, higher than any other age group, highlighting the younger generations’ savvy approach to managing their mortgage.
By comparison, only 18% of those over 55+ have ever remortgaged to get a better deal.
David Hollingworth from L&C Mortgages said: “Young people are, on the whole, taking the savvy steps needed to ensure they haven’t bitten off more than they can chew in terms of covering their mortgage payments. Using a fixed rate mortgage is a good way of managing what is most likely your biggest outgoing – but it is always worth getting advice on what’s the best deal for you, especially as a first time buyer.”