Homebuyers opting for marathon mortgages with terms of 35 years or more could end up paying tens of thousands of pounds in extra interest.
Last year one in five first-time buyers — more than 55,000 — took out long mortgage deals lasting at least 36 years, according to the trade body UK Finance. In 2022 fewer than one in ten first-time buyers opted for terms that long.
Choosing a long mortgage term helps to make repayments more affordable. At a time of high interest rates and property prices, it may be the only way that many first-time buyers can afford to get on the ladder.
Mortgage rates were at rock bottom for more than a decade but the average two-year fix at 90 per cent