Db123 Tma1

DB123 You and your money: personal finance in context

TMA 01

TMA 01

Contents: Part 1. Page 3

Part 2. Pages 4

Self-Evaluation. Page 5

References. Page 5

PART A

Table 1 is a summary of the age of mortgage borrowers in the UK, and their distribution.

The main features of this table are:

* The percentage of mortgage owners under 25 has decreased considerably from 1990. Starting at 19.6% this dropped to 6.2% by 2013. Although there were two occasions of increases, 1998 and 2002, on the whole there has been a steady decline - continuous since 2007.

* There is a clear contrast between Under 25’s and 25-34 vs 35-44 and 45-54. The later groups showing increases in the given period compared to the younger both having shown decreases. It is more drastic in the under 25’s. The two older groups experienced similar growth.

* The table illustrates the increasing average age of homeowners. Rising from 34 in 1990, to 37 in 2013. This rose steadily with a drop in 2002/2003. The following year the age returned to its previous level, then reaching a peak of 39 in 2010.

* Age group 45 to 54 has shown the biggest percentage increase. Starting at 10% in 1990, this reached its high of 19.5% in 2010 before dropping slightly to finish at 17.2% in 2013.

* 1999 vs 2000 shows a decrease in the group 25 to 34, dropping from 44.3% to 40.8%, and an increase in the 55 or over category from 5.7% to 10.1%. The other groups remained similar but the average age jumped from 36 to 38. The largest jump since the start of the records in 1990.

* The number of mortgages increased each year but then fell from 2008 onwards. Only 2011 showing a rise before then falling for 2012 and 2013. Finishing at the lowest level since 2001.

* 2003 contrasts dramatically against 2002 against all groups apart from the Over 55’s however this group did fall dramatically from 11% in 2001 to 7.1% in 2002, including average age dropping to 36....