Is a 35-year mortgage right for you?

With the growing prospects of rising house prices, historically low interest rates, increasing longevity and delayed retirement, more and more people are considering borrowing for longer.

Last year, some 20% of property buyers searched online for long-term loans – up from 8% the previous year.Nearly 30% of first-time buyers took-out mortgages in excess of 30 years, with a significant proportion arranging terms of 35 years or more. Even home movers are beginning to do likewise, where the numbers more than doubled from 5% to 12% over the year.Overall, the proportion of purchasers organising loans for longer than the ‘typical’ 25-year term has doubled during the past five years. Most lenders, therefore, will agree to 30-year terms, many to 35 years, and some to as long as 40 years.So what is the attraction of long-term mortgages? Put very simply...

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