Young homeowners rejecting fixed rates

New research reveals that younger homeowners are more likely than older borrowers to take a risk with their mortgage payments by not locking into a fixed deal. According to the comparison site Uswitch, 42% of borrowers aged 18 to 24 have a fixed-rate mortgage, this compares with 81% of 25 to 34-year-olds on a fixed rate, 80% of 35 to 44-year-olds, 71% of those aged 45 to 54, and 57% of those over 55. Analysis shows about 25% of those aged 18 to 24 are on a standard variable mortgage. A further 18% of this cohort are on tracker mortgages, which usually follow the Bank of England's base rate, and 15% are on discounted mortgages, which is a set percentage below the lender's SVR. Younger homeowners also have the highest average mortgage costs at £1,390 a month, nearly double the £764 paid by those aged over 55. 

The Times (12/11/2022)