Millennials are proving to be very savvy when it comes to taking out a mortgage and ensuring they can make repayments, new research has found.
According to a survey by L&C Mortgages, 92 per cent of 18-34 year olds who have managed to get on the property ladder have opted for a repayment mortgage, which means they are gradually paying back the capital as well as interest.
In addition, 69 per cent of this age group have chosen to take out a fixed-rate mortgage to ensure they know how much they’ll be paying every month.
By comparison, those aged over 55 are less likely to have a repayment mortgage, with just 68 per cent of this group choosing this type of mortgage, with many others on an interest-only deal.
David Hollingworth, from L&C Mortgages, said that this research shows that younger borrowers are taking the steps needed to “ensure they haven’t bitten off more than they can chew” when it comes to paying back a property loan.
“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,” he added.
Earlier this year, figures from the Council of Mortgage Lenders showed that the number of first-time buyers (FTBs) entering the UK’s property market has grown in recent months. According to the organisation, there was a 2.4 per cent increase in the number of FTBs in April this year, compared to the same month in 2016.
Estate agents like Beercocks can help FTBs find and buy their first property with ease. We provide a free cost of moving appointment so you know how much you’ll need to budget for and we also provide free valuations of properties to help you make key decisions. Call us today to take advantage of our vast local knowledge.