Rising interest rates spell disaster for these debt burdened homeowners
Older millennials are the age group most vulnerable to financial problems after taking on disproportionately large debts when interest rates were low.
Buyers in their late 30s took out the largest mortgages in the 2021-22 financial year and will be under the most pressure when they remortgage, according to Savills estate agents.
These buyers could be forced to sell up if their new repayments are unaffordable, which would accelerate house price falls, according to the Centre for Economics and Business Research think tank.
Buyers aged 35 to 39 bought properties with mortgages of £195,407 on average in the last financial year – larger than any other age group, Savills’ analysis of official data found.
Their deposits were 47pc of the purchase price, at £174,448 on average.
Buyers aged 30 to 34 took out the second-largest debts, at £187,389, while their deposits were worth an average of £136,254, or 42pc of the price paid.