Millennial money masters
Young people can get a bad press. Millennials are at times branded as selfobsessed, or lazy, or entitled, and let’s not forget that they are also supposed to have poor literacy and numeracy skills.
Well, new Which? research will stick in the throat of those who like to believe the worst about young folk. For it turns out that while it can be hard for millennials to get a mortgage given the hurdles of the property market - when they do get on the ladder they are paying off their mortgages faster than anyone else.
Our Which? mortgage advisers found in their survey of 3,500 homeowners, that almost half (46 per cent) are overpaying on their mortgages - but it’s the 18-24 year olds who are ahead of the game with 69 per cent paying off more of their loan than they had arranged. So much for Millennials being lacking in numeracy skills or motivation.
It also found that people in London (60 per cent) and the West Midlands (52 per cent) are the most likely to be making mortgage overpayments. Indeed paying down a mortgage early is so popular with some people, that 25 per cent are paying extra every month.
Which is all great news for household money management, and perhaps not too surprising given that so many banks are failing to pass on base rate rises to customers with savings accounts. It makes sense for those who do find they have a little extra to put it towards paying down their mortgage quicker. After all, the benefits can be enormous, cutting months of the length of a mortgage loan and saving hundreds if not thousands of pounds in the long run.
So it’s always worth trying to put a little more towards that debt if you can. And similarly, it’s always worth looking at remortgage options to ensure you’re paying the best possible rate with flexibility built in.
But before making an overpayment consider what else you might need the money for - you could even invest in your house in a different way, such as through improvements. After all, it’s not just a property with a mortgage attached, it’s your home.
Remember to send me your consumer queries to askalex@which.co.uk