Millennials are buying property but many struggle with mortgage repayments. Picture: Supplied

MONEY may be cheaper than ever but a fifth of young borrowers still can’t make their mortgage repayments.

And they are more in debt than any other age group by a long shot.

When mortgages, credit cards and personal loans were added up millennials, those aged between 18 and 34, owed an average of $428,000 — a massive $146,000 more than was owed by gen X and Baby Boomers.

The research done for Australian credit bureau, Experian, found many millennials were “extremely concerned’’ about the affect a 1.5 per cent increase in interest rates would have on them.

The study of more than 1500 people found gen X borrowers were also quite concerned.

Major banks moved to lift their fixed interest rates this week and analysts are now predicting potential rate rises for next year.

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About a fifth of millennial home buyers missed a mortgage repayment in the past 12 months. Picture: Supplied

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Experian Australia/NZ managing director Suzanne Steele said first home buyers and millennials were the most in debt generation and most likely to miss repayments on their mortgages.

“22 per cent of Australian millennials had been unable to make a mortgage repayment in the last 12 months, which is twice as many as the overall market average (11 per cent),’’ she said.

Ms Steele said one reason for the high borrowings of millennials could be their desire to meet social expectations while trying to build wealth in a market of rising house prices and low income growth.

With findings such as these, Ms Steele said there was no doubt that a rate rise would make things trickier for those looking to get their foot on the property ladder.

“We may see fewer mortgage applications from young individuals or first home buyers looking at more affordable properties.”

Millennials were taking on extra shifts or second jobs to help them make ends meet. Picture: Supplied

Despite struggles with meeting repayments millennials were keen to get their hands on credit with the generation applying for more than twice as many credit cards, mortgages and personal loans as the average gen X or baby boomer in the past 12 months.

While they may be asking for credit, they weren’t necessarily getting it, with the study finding they were more likely to be knocked back.

To help them cope with their large levels of debt more than half of the millennial mortgage holders surveyed had cut down on buying “essential items”.

More than a third took on additional hours or a second job and a similar number borrowed from friends and family.

About 17 per cent of millennials said they could not maintain their lifestyle without borrowing.

Ms Steele said, people concerned about their level of debt or considering a new line of credit, such as a mortgage, should first check their free consumer credit profiles.