The number of mortgages that have terms of 25 years or more has doubled during the last five years.

As house prices continue to rise, first time buyers are being forced to consider mortgages that have repayment terms of 35 or even 40 years, so they can afford the repayments. The number of borrowers who apply for a mortgage with a term of 35 years or more has increased to one in five, in comparison to the previous rate of one in 12 just one year ago. The data was supplied by the Mortgage Advice Bureau.

First time buyers feel they have to stretch their mortgage terms so that they can afford the monthly payment. However, experts warn that the amount paid back in interest will be far higher on a 40 year term than a mortgage paid back over 25 years. According to the Council of Mortgage Lenders, the number of people taking on mortgages over more than 25 years has doubled, with lengthy mortgage terms making up a third of all applications.

As interest-only mortgages are virtually impossible to obtain, taking a mortgage over 30 to 40 years may be the only way to afford a house. Seeking advice from a mortgage adviser is recommended before committing to a mortgage with a longer term, preferably an adviser with CeMAP training. Birmingham is just one of the cities where people are struggling to obtain and afford a mortgage over a 25 year term or less.

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