Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
30-40 Year Mortgage Terms Now Common Among Under-30s, Analysis Finds
Two-thirds of UK mortgage borrowers under the age of 30 now have mortgage terms of between 30 and 40 years, according to new analysis by the overpayment app Sprive. The research, based on data from more than 190,000 homeowners, highlights a significant shift towards longer mortgage terms among younger buyers.
Sprive found that 66% of borrowers under 30 have mortgage terms of 30 to 40 years. This compares with 42% of those aged 30 to 39, and just 6% of homeowners aged 40 to 49. As a result, homeowners under 30 are projected to pay off their mortgages at an average age of 59.
The analysis also shows that younger borrowers face higher average mortgage rates. Under-30s pay an average rate of 4.5%, while those aged 40 to 49 pay an average of 3.89%.
Average monthly repayments remain above £1,000 across all age groups. Under-30s pay an average of £1,008 per month, rising to £1,138 for those aged 40 to 49, before falling among older homeowners.
For letting agents and inventory clerks, these findings indicate that younger tenants and buyers may be committing to longer-term financial arrangements, potentially impacting their mobility and long-term housing decisions.
Source: Mortgage Strategy