The Council of Mortgage Lenders has released data showing that more and more home buyers are choosing a mortgage term of up to three decades, in an attempt to secure their place on the property ladder.

April to June 2014 saw one in five new loans with a term of 30 years or more, but this figure was even higher amongst first-time buyers, at 28 percent.

Generally, the standard term for a mortgage is 25 years and, only 10 years ago, fewer than five percent of borrowers chose to take their mortgage over a longer term. The soaring property prices of current times – coupled with the fact that the average first-time buyer is now in their 30s as opposed to their 20s – means that for many, a longer term is seen as the only option.

Also, following the Mortgage Review, which saw the Financial Conduct Authority impose more stringent financial checks, some feel it has made the extended term route the only option to succeed in owning a dream home.

While borrowing over a longer term will reduce monthly payments, it also means that it will cost more overall to repay the debt, as the interest is being charged over a longer term.

The vast number of changes that the mortgage market has encountered means there are a number of options available to homebuyers. Many choose to seek the guidance of a mortgage professional who has undertaken the relevant CeMAP training, to ensure they get the best advice and most suitable deal.

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