Millions of us are caught in an endless mortgage trap, recent astonishing research reveals today.
Recent homeowners are likely to be paying off their mortgages into their 60s and 70s.
The middle classes are feeling the pinch due to taxes slashing disposable income, with nearly half of Britain now middle class.
This crisis is due to people altering their mortgage every few years, yet never reducing their home loan life.
The average person starts their first mortgage aged 30 and ought to have paid off their 25 year home loan by 55.
Many though take out a new mortgage every few years, always taking out another 25 year deal. The answer lies in reducing it to 20, 18 or fewer years.
Experts state that this is an 'expensive mistake' many will regret when they are unable to retire even when approaching their 65th birthday .
Price comparison giant Moneysupermarket.com, who conducted the research, state that it is a foolish to extend the term of the mortgage. It is a short term solution however with long term consequences.
The majority of home owners take out another 25 year home loan when remortgaging as it cuts their monthly repayments.
However, financial experts warn that this is a totally false economy, as the same mortgage ends up costing almost £30,000 in extra interest payments.
On a 25-year £110,000 mortgage at 4.93% interest rate, interest payments would amount to a massive £84,000.
Yet the cost will balloon should you remortgage after five years onto another 25-year deal, and do so again five years down the line.
Interest payments would amount to a staggering £112,750, more than the initial home loan .
The best advice is to take out a 25 year mortgage and keep on trying to decrease the life of the mortgage each time you change home loans otherwise you could spend up to 60% of your salary on your mortgage alone.
