People between the age of 18 and 24 years old are spending on average £1,390.90 a month in mortgage repayments, the highest of all age brackets, according to a mortgage statistics report by Uswitch.
This age bracket is spending 59% more than 25 to 34-year-olds’ average monthly repayment of £874.35 – the second most expensive.
Those 55 and older have the cheapest monthly payments, averaging just £763.79, representing 45% of the average monthly repayments for 18 to 24-year-olds.
Uswitch suggests that a lack of capital forces young people to accept higher mortgage repayments.
In addition, the research found that 0.99% of 18 to 24-year-olds 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 to 54-year-olds repay over £3,000 a month for their mortgage: the second largest portion from all ages analysed.
Meanwhile, 25 to 34-year-olds have the longest mortgage terms on average at almost 30 years (29.44).
On average, 57.25% of homeowners in this age bracket have a mortgage term of 30 years or longer.
The average length of a 25 to 34-year-old’s mortgage is 30% longer than the initial mortgage term for those aged 55 and over (22.73 years).
While those aged 18 to 24 have a shorter period of 26.09 years, Uswitch says this will more than likely increase due to the recent introduction of 50-year mortgages in the UK.
Although fixed-rate mortgages are the most popular across all age brackets, they are utilised far less by 18 to 24-year-olds.
At least half of every other age bracket has a fixed-rate mortgage, but only 41.58% of 18 to 24-year-olds opted for this deal.
When it comes to those aged 25 to 34, fixed-rate mortgages make up around 80% of them.
Uswitch suggests that the recent increase in interest rates will be much less substantial for this age bracket.