Two-thirds (66%) of homeowners aged 30 and under are now on terms between 30 and 40 years as a result of higher LTVs and rising mortgage rates, Sprive has stated.

Analysis by the mortgage overpayment app of more than 190,000 homeowners found that this proportion compares to 42% of homeowners aged 30 to 39 who have mortgage terms between 30 and 40-years, and 6% of those in their 40s.

As a result, young homeowners are typically on course not to own their respective homes outright until they are 59 years old.

Despite the longer repayment periods, under-30s have an average mortgage rate of 4.50%, compared to 3.89% for homeowners aged between 40 and 49, with monthly mortgage payments remaining above £1,000 across every age group.

CEO at Sprive, Jinesh Vohra, stated: "Longer mortgage terms have become the price many younger buyers have to pay to get onto the property ladder. Spreading repayments over 30 or even 40 years can make monthly payments affordable, but it also means paying interest for much longer and staying in debt well into later life.

"The good news is that there are ways to cut the debt; making overpayments, even relatively small ones can shave years off the mortgage and save tens of thousands of pounds in interest. Many people don't realise how much difference regular overpayments can make.”

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