The debt of house-ownership

The average mortgage term is lengthening from the traditional 25 years, according to figures from broker L&C Mortgages.

Its figures show the proportion of new buyers taking out 31 to 35-year mortgages has doubled in 10 years. The income squeeze also meant that many "needed some slack in the monthly budget", so were choosing the longer-term mortgages.

That means lower monthly repayments, but a bigger overall bill owing to the extra interest incurred. The extra total cost can be tens of thousands of pounds

The average term for a mortgage taken by a first-time buyer has risen slowly but steadily to more than 27 years.

In 2007, there were 59% of first-time buyers who had mortgage terms of 21 to 25 years. That proportion dropped to 39% this year. In contrast, mortgage terms of 31 to 35 years have been chosen by 22% of first-time buyers this year, compared with 11% in 2007.

The total cost of a £150,000 mortgage with an interest rate of 2.5% would be more than £23,000 higher by choosing a 35-year mortgage term rather than a 25-year term. If you keep the term shorter, it will save you money in the long run.

Lenders have been offering longer mortgage terms, of up to 40 years, to reflect longer working lives and life expectancy.