Homeowners under the age of 25 are the most likely age group to opt for a tracker mortgage, a study by Uswitch has found.

A survey among more than 2,000 UK homeowners indicated that 17.8% of those aged between 18 and 24 took on the risk of fluctuating interest rates influencing their monthly repayments – a figure 13.7 percentage points higher than those aged between 25 and 34.

Uswitch also reported that standard variable rate (SVR) and discounted mortgages are also much more popular for 18 to 24 year olds, at 25.74% and 14.85% respectively.

While fixed-rate mortgages are the most popular across all age brackets, the study suggested they are utilised far less by the youngest homeowners. At least half of every other age bracket has a fixed-rate mortgage – with four in five (80.7%) of 25 to 34 year olds choosing this rate – but only 41.6% of 18 to 24 year olds opted for this deal.

At 7.5%, 45 to 54 year olds were revealed to be the second most likely to choose tracker mortgages. While far less likely than 18 to 24 year olds (17.8%), Uswitch also revealed that 45 to 54 year old homeowners are twice as likely to opt for a tracker deal than 35 to 44 year olds, the least likely of any age group analysed (3.7%).

SVR mortgages are also more popular with 45 to 54 year olds, as one in five (20.2%) have taken these mortgage plans. SVRs also pose potential risks, as the interest rates are dictated by the lender themselves, rather than the Bank of England.

Furthermore, the study found that 6.6% of those 55 or older have taken tracker mortgages. While only 56.6% opted for a fixed rate mortgage, they were still less likely to have tracker deals than 45 to 54 year olds, despite 70.8% of them having a fixed rate plan.

This is because over a third (35.7%) of over-55s opted for an SVR mortgage, the most analysed in the Uswitch study, and 23.7 percentage points more than 25 to 34 year olds.

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