Consumers trying to get on the property ladder today are younger than they were five years ago, Clydesdale and Yorkshire Banks have found.
The figures showed the majority of Clydesdale and Yorkshire Banks’ mortgage applicants over the past 12 months were 36-40 year olds, while most requests in 2012/13 were from 41-45 year olds.
Caroline Graham, Clydesdale and Yorkshire Banks’ head of mortgages, said: “The financial issues with renting have been well documented and so people are being urged to save for a deposit in order get onto the property ladder as early as possible.
“We’ve also been in a prolonged environment of historically low interest rates and even as base rate starts to rise many monthly mortgage repayments cost less than rent so consumers are better off.”
With soaring rental prices across the country leaving many people unable to save, the financial benefit to home ownership is clear.
In the last year alone, the Banks have been dealing with one mortgage application every 15 minutes. A third (30%) of first-time buyer applicants were aged 26 to 30 years old and over a fifth (22%) were aged 21 to 25.
The data has been released as Clydesdale and Yorkshire Banks launch a new scheme offering £500 cash back to customers across a range of mortgages.
From today, (Monday, September 17), the offer is available to customers borrowing a minimum of £75,000 who are buying a property, remortgaging from another lender or releasing equity.
The banks have also reduced rates on some of its mortgage products, including two fixed rate first-time buyer products.
Graham added: ‘‘With high rental costs causing financial strain to many, it’s positive to see the age of customers applying for a mortgage is decreasing.
“In May our digital banking service Bundertook research and found most (75%) British people are worried about money, and one of the main triggers is the cost of renting a property.
“If all of us can build a better relationship with money, using banking tools such as B, and taking advantage of the best market rates for mortgages, then as a country we can become much more financially fit.”