Gen Z faces mortgage crisis

Gen Z homebuyers are facing unprecedented challenges, with average mortgage repayments reaching £1,739 a month, nearly double that of millennials, who paid around £863. Research highlights that Gen Z is expected to pay £104,000 in the first five years of their mortgages, compared to £51,800 for millennials. The surge in costs is attributed to soaring house prices and rising mortgage rates, which are unlikely to return to pre-COVID levels. Millennials paid an average of £246,000 for their homes, significantly more than previous generations. As a result, while baby boomers and Gen X have repaid about 60% of their loans by the halfway point of a typical 25-year mortgage, millennials are projected to have paid off just shy of 40%. 

The Times (07/10/2024)