With an average age of 33 and 8 months, a first-time buyer will not pay off their mortgage until they are 63 and 8 months, according to research by Mojo Mortgages.
This age differed according to region, with 66 and 8 months in London, down to 59 in Wales.
John Fraser-Tucker, head of mortgages at Mojo Mortgages, said: “While longer mortgage terms can provide some short-term relief in the form of lower mortgage payments, they come at the cost of significantly higher overall interest charges over the life of the loan.”
“Our research has found that with a 10% deposit and the current average mortgage rate of 6.03%, the total cost of an average-priced house (£264,500) varies significantly on the loan term.
“For a 25-year loan term, the total cost would be £461,400, which includes the principal amount and interest charges.
“However, if you extend the loan term to 30 years, the same house will cost an additional £53,760, bringing the total cost to £515,160.
“And if you extend the loan term even further to 35 years, the total cost will increase by £110,640 compared to the 25-year term, amounting to £572,040.”
