Gen Z mortgage payments double those of older buyers

High interest rates and rising house prices mean Generation Z are facing mortgage payments twice as high as the generations before them, new analysis has shown.

- JABED AHMED

Home buyers born in the late 1990s, known as Gen Z, will be paying on average £1,739 a month in mortgage repayments, according to research from estate agent Hamptons. Those born in the 1980s to mid-1990s, who are considered millennials, by comparison, will have been paying around £863 a month when buying their first house, once adjusted for inflation.

Baby boomers – born between 1946 and 1964 – will have paid an average of £775 a month and a first time Generation X buyer, born between 1965 and 1980, a £923 monthly payment.

The combination of near-record house prices and the increase in mortgage rates, which are not expected to drop below pre-Covid levels, means Gen Z buyers, on average, are forecast to pay £104,000 in repayments over the first five years of their mortgage.