Ultra-long mortgage deals are leading to homeowners unwittingly paying tens of thousands of pounds more in interest payments, according to industry experts. There has been an increase in the number of mortgages of 35 years or more and high house prices have forced borrowers to pay back their loans over a longer period in order to keep monthly repayments at a manageable level. However, industry experts have warned that consumers may have sleepwalked into these deals without realising the true cost, as thousands of loans were taken out without adequate financial advice. An analysis by Quilter, the wealth manager, revealed that an average first-time buyer who purchases a house worth £193,701 will pay £80,000 more if they spread repayments over 35 years than over the traditional term of 25 years.
The Sunday Telegraph (15/09/2019)