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A third of FTBs borrowing five-times income

A third of 18 to 25 year olds have a mortgage worth five times their salary, research from Equifax reveals.

It claims that young people are setting themselves up for a poor retirement with women potentially most at risk.

Some 50 per cent of 18-25 year olds already have over £5,000 of short term debt and 33 per cent of this age group that have a mortgage, have borrowed more than five times their salary.

With this group of consumers being the most vulnerable to job change, combined with the high risk of further interest rates rises, Equifax is warning that they could find themselves in serious financial difficulties.

Additionally, 75 per cent of 18-25 year olds do not have any form of pension. Yet with the debts already adding up, the survey suggests that borrowing is starting earlier than ever amongst UK consumers.

Equifax external affairs director Neil Munroe: “It looks like young people simply aren’t thinking about their financial future – even 10 or 15 years hence, let alone their retirement.”


4,000 More City jobs to be created this year

Around 4,200 more City jobs will be created this year, according to research from the Centre for Economic and Business Research. Most of the employment growth has been in the professional services sector, including law and accountancy roles, making up 2,800 new jobs in the Square Mile and Canary Wharf.

‘Don’t believe the Reit hype’

Sesame is warning advisers that it believes the diversification benefits of Reits have been overhyped, saying global Reits are no more effective than investments concentrated in other specialist sectors.

‘Small firms should heed consultants’

The FSA has called on small firms to act on advice given by compliance consultants to help them comply with regulatory requirements, after it found over a third of advisers are not doing so.

Brokers want retro boost for critical policies

Protection advisers are calling for improvements to critical-illness insurance policies to be applied retrospectively to existing customers as well as new customers to boost trust in the industry.

Benefits of using a probate bare trust

Have you ever wondered what happens to someone’s investment bond on their death if it is not written in trust? When someone dies it is essential to deal with their estate, which can be made up of their home, belongings, investment bonds and anything else they may have owned. But, it is not as simple […]


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