Over the past decade, millennials opting for mortgages longer than the standard 25-years has doubled.
Miles Robinson, head of mortgages at Trussle, believes that ensuring monthly repayments are affordable has increasingly become buyers’ primary concern rather than the overall value of their property.
Robinson said: “We’re living in a time when more than half the UK population now wait until the age of 34 before owning their first home, and may consider it a stepping stone rather than a home for life.”
In addition, the impact of coronavirus has resulted in rising house prices and a lack of higher LTV mortgage products.
As a result, almost three quarters (71%) now plan to buy in a town, suburb or rural location.
Furthermore, Robinson points to the regional disparity in the level of deposits, with a buyer in South East London expected to save an average deposit of £79,000, compared to £14,000 for a deposit on a property in Harrogate.
Robinson said: “It’s no secret that getting a mortgage is often one of the biggest financial and emotional commitments a person will make in their lives.
“And for many first-time buyers, spreading mortgage payments over a longer period of time might seem like the most affordable option.
“However, it’s important to bear in mind that increasing the repayment term means you will incur long term interest rates, increasing the overall amount payable.”