Homebuyers warned of extra interest costs on long mortgages

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 took out long mortgage deals lasting at least 36 years. Choosing a long mortgage term helps make repayments more affordable, but it can lead to higher interest payments in the long run. Mortgage rates have increased significantly, making affordability a top priority for borrowers. Experts advise considering shorter terms or making overpayments to reduce the risk of having a mortgage in retirement. 

The Times (16/03/2024)