Older millennials are the age group most vulnerable to financial problems after taking on disproportionately large debts when interest rates were low.
Buyers in their late 30s took out the largest mortgages in the 2021-22 financial year and will be under the most pressure when they remortgage, according to Savills estate agents.
These buyers could be forced to sell up if their new repayments are unaffordable, which would accelerate house price falls, according to the Centre for Economics and Business Research think tank.
Buyers aged 35 to 39 bought properties with mortgages of £195,407 on average in the last financial year – larger than any other age group, Savills’ analysis of official data found.
Their deposits were 47pc of the purchase price, at £174,448 on average.
Buyers aged 30 to 34 took out the second-largest debts, at £187,389, while their deposits were worth an average of £136,254, or 42pc of the price paid.
By contrast, buyers over the age of 55, many of whom are downsizers, only took on an average mortgage of £68,109. They used large deposits of £287,531 to fund the bulk of their purchases.
Buyers in their late 20s had smaller loans and deposits compared with those in their 30s, at £186,223 and £74,006 respectively.
Lucian Cook, of Savills, said those in their 20s were more likely to purchase smaller flats or the most affordable properties they can find.
Buyers in their 30s are often choosing bigger properties to start families, which is why they are taking on more debt.
