Generation Y mortgage holders are capable of repaying their mortgage at an interest rate of at least nine per cent, a mortgage broker survey says.

According Mortgage Choice’s 2009 consumer sentiment survey, 64 per cent of existing borrowers aged 18 to 29 years said they could afford repayments at, or above nine per cent.

Of those, almost half - 46 per cent - are prepared to repay at 11 per cent or more.

“Financial markets are predicting that by this time next year the cash rate will have returned to a more neutral level of around 5.5 per cent, which means variable mortgage interest rates will stand at around eight per cent,” Mortgage Choice senior corporate affairs manager Kristy Sheppard said.

“Looking at our survey results indicates a high percentage of existing borrowers will adjust relatively easily to rate rises.
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