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Irish buyers paying the price for 'super-term' mortgages

First-time buyers in Ireland are being hit by more than €100,000 in extra interest payments - as it emerges seven out of 10 new homeowners are opting for costly 'super-term' mortgages which can last 35 years.

Many cash-strapped wannabe house purchasers - desperate to keep their monthly spend as low as possible - are increasingly stretching repayments over three decades.

New figures from the Real Estate Alliance show 75% of first-time buyers in Ireland now have mortgage terms of between 25 and 35 years.

Just 20% have mortgages lasting between 20 and 25 years - and a hard-pressed minority comprising 5% of borrowers have mortgage terms in excess of 35 years.

As the gap between the typical salary and average house price continues to widen, many young couples are tempted to push out the length of their loan for as long as possible. This can dramatically reduce the cost of monthly repayments.

But financial experts warn these long-term mortgages cost dearly in the long run. It means that many of the current generation of house-buyers will be retired - or hovering near pension age - and still be burdened with monthly repayments.

In 2005, the average first-time buyer in Ireland was about 29 years old - however, this figure now stands at 33.

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