Canny remortgagers should avoid extending their terms to prevent themselves falling into a 'never-ending' mortgage trap, a price comparison service has said.

Consumers who continually extend the length of their mortgage term face the prospect of reaching retirement age without paying off their debt, said moneysupermarket.

While some remortgagers are tempted to increase their term in order to reduce monthly repayments, this can be costly in the long run. Extending a mortgage for five years can cost as much as an extra £14,460 in interest charges, the company found.

However, of the 17 per cent of remortgagers who decreased the term on their home loan, 67 per cent did so to pay off their debt more quickly.

Remortgaging remains a very popular option among homeowners, with the average homeowner remortgaging or taking out a new mortgage every five years in order to take advantage of the best deals.

Moneysupermarket said that the smart option for remortgagers was to keep the total term the same, or alternatively they could reduce it and save a fortune.

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