Just 22% of those under the age of 30 have a mortgage, the latest research from Alliance & Leicester (A&L) reveals.
The lender says the results of its latest research show one of the main reasons those in their 20s do not have a mortgage is because of a high level of indebtedness. But it says this is explained by the majority having student loans rather than huge personal loan, overdraft or credit card debts.
The majority of those in their 30s and 40s meanwhile (59%) do have a mortgage but also tend to owe less on their mortgage than those in their 20s. On average, if they have a mortgage, then those in their 20s will owe £126,000, compared to £79,000 for 30 to 50 year olds.
But despite having a mortgage that is 60% larger and lower average incomes, they are only very slightly more likely to have missed a payment.
Chris Rhodes, managing director of Alliance & Leicester Retail Banking, says: “Overall the under 30s are in a good position, however there is some variation within this group and some are more financially stressed. People don’t always realise that missed payments can affect a borrower’s credit rating. Talking to the lender at the first sign of difficulty can help avoid problems later on. Younger people are less likely to contact their lender if they experience any problems which is unfortunate as in most cases this is the best advice.”
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