UK's Financial Education Gap: Young Adults Lack Essential Mortgage Knowledge

A new study by Boon Brokers reveals that despite financial literacy being part of the UK National Curriculum since 2014, young adults still lack essential mortgage knowledge. 83% didn’t learn about mortgages at school, while many rely on parents and social media for education. The research highlights the urgent need for improved and practical financial education.

A new study conducted by Boon Brokers reveals alarming findings about the state of financial education in the UK, particularly in relation to mortgages. Despite the introduction of Financial Literacy into the National Curriculum in 2014, young adults are still leaving school with inadequate knowledge on essential financial topics.

The research, conducted between April 10th and 17th, 2025, sheds light on the gap in financial education, especially regarding mortgages, and highlights the failure of the current curriculum to meet the needs of today’s youth.

The disconnect: Young adults and mortgage education

The study surveyed 1,000 young adults aged 18 to 24, a demographic that should have directly benefited from the curriculum changes. However, 83% of respondents did not list school as their primary source of education about mortgages, with a significant 74% unaware that Financial Literacy was even a part of the National Curriculum. This suggests a profound disconnect between the government’s educational reforms and their actual impact on students.

Gerard Boon, Managing Director of Boon Brokers, highlights the severity of the issue, stating, “The absence of formal education on mortgages means that young adults are entering into one of life’s biggest financial commitments without a proper understanding of how mortgages work.”

Parents and social media as main educators

The study also reveals a worrying trend in the sources of financial education. While 39% of young adults relied on their parents as their primary source of mortgage education, another 14% turned to social media platforms, which are often filled with unverified and misleading information. This points to a serious issue, as the current educational system fails to provide adequate resources for learning about mortgages and other financial products.

Only 58% of respondents reported that their schools offered any resources to learn about mortgages, further illustrating the gaps in financial education. Boon adds, “It’s clear that the current approach to financial education is failing to prepare young adults for the financial realities of life, leaving them vulnerable to bad financial decisions.”

The growing financial blind spot

The research also highlights a troubling overconfidence among young adults about their mortgage knowledge. Despite the lack of formal education, 67% of respondents believe they have an above-average understanding of mortgages. This misplaced confidence can lead to risky financial decisions, as many young adults overestimate their ability to navigate the complexities of mortgage agreements.

Boon emphasizes, “This false sense of security is dangerous. Without understanding key concepts like interest rates, repayment terms, and the implications of long-term debt, young people are at risk of falling into financial traps.”

The need for a financial education overhaul

As part of its findings, the research underscores the need for a complete overhaul of financial education in the UK. 92% of young adults expressed a desire for mortgages to be taught in schools, with many recognising the importance of financial literacy in securing their financial future. However, the data reveals that despite the National Curriculum reforms of 2014, the curriculum has not been sufficiently implemented or communicated to students.

The research stresses that mortgage education should no longer be treated as an optional or secondary topic but as a fundamental part of the financial curriculum. Boon comments, “Financial education, particularly around mortgages, is a necessity for young adults who will soon face these financial decisions. It should be taught as a core subject in schools, not just an optional add-on.”

The unseen impact of financial illiteracy

The findings of this study are stark: young adults are leaving school without the knowledge needed to make informed decisions about mortgages, one of the most significant financial commitments they will ever make. The research exposes a deep-rooted flaw in the UK’s approach to financial education, particularly in the teaching of mortgages.

“The issue lies in the gap between policy and practice. Ten years after the curriculum reform, financial awareness of mortgages remains a missing piece in the average student’s education,” says Boon. “It’s clear that there’s an urgent need for more accessible and visible resources to help young people understand the importance of financial literacy.”

A call for immediate action

With 67% of young adults feeling confident about their mortgage knowledge, despite the overwhelming evidence that they lack the necessary understanding, the call for change has never been clearer. The research calls for urgent action to ensure that young adults are equipped with the financial skills necessary to make informed decisions about mortgages and personal finances.

Boon concludes, “If we want to avoid a generation of young people making poor financial decisions and becoming trapped in debt, we must prioritise practical, real-world financial education in schools. Mortgage education should no longer be an afterthought but a fundamental aspect of the curriculum.”

About Boon Brokers

The research was conducted by Gerard Boon, Managing Director of Boon Brokers Limited, a Directly Authorised Online Mortgage, Insurance & Equity Release Brokerage in the UK. Boon Brokers has grown rapidly, serving over 9,000 clients across the country. Gerard Boon is passionate about integrating Artificial Intelligence into the financial services industry, and his academic background includes a First-class dissertation on AI in financial intermediation.