According to the research, 44 per cent of the under 25s who owned a property had to put 31 per cent of their monthly wage into repaying the mortgage. mform.co.uk also revealed that over 100,000 young homeowners were using over 50 per cent of their monthly income to repay their mortgage.
In addition, aspiring first-time buyers were borrowing 180 per cent more than a decade ago to get onto the property ladder.
Francis Ghiloni, marketing and business development director at mform.co.uk, said: “As house prices increase and mortgage rates rise, people are going to have to use more of their income to pay their mortgages, which will put many under considerable financial strain and could result in them falling behind with their repayments.
“We estimate that between 2002/03 and 2006, the true cost of a mortgage increased by around 33 per cent.”
Responding to the findings, Paul Banfield, partner at Best Advice Financial Planning, said: “The percentage of net income going towards mortgage repayments is going to increase as a lack of housing fuels prices even further. This is why we a seeing more grandparents looking after grandchildren as families depend more upon two incomes.
“We are a house buying nation, but at the same time people do not want to compromise on their social lives, so may even take second jobs or use credit cards. It will carry on this way for years.”
