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More Brits sign up for 35-year mortgage

As it becomes increasingly difficult to buy a home, more people are turning to longer terms for their mortgages so that they can get onto the property ladder.

Around 25% of first time buyers are selecting the option of a 35-year mortgage, and sometimes even longer, in a bid to be able to afford their own home. Although it is rare to see a mortgage for values of 95% or greater, longer term mortgages are becoming more popular.

In 2016, 28% of UK mortgages were taken out by first time buyers, and of 312,497 mortgages, 87,676 were for terms of 35 years or greater. During the first three months of 2017, the figure had increased to 30%. Back in 2006, the figure was 13.8%, according to information from the Financial Conduct Authority.

The popularity of 35-year loans differs around the UK, with Ipswich being the most likely postcode for longer term mortgages. During the initial three months of 2017, 45.4% of new mortgages in Ipswich were for 35 years or more.

More people are borrowing at higher multiples of their annual income, with people in London and surrounding areas more likely to do this. As lending criteria has toughened and lenders are restricted to the number of long term loans and other products they can release, buying a home continues to be a complex process. Mortgage advisors invest in a CeMAP training course, so that they are able to provide advice for all buyers.

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