First-time buyers are increasingly considering taking out interest-only mortgages in order to be able to afford paying for a property.

However, financial experts have advised that, while these packages can represent a good short-term option, buyers must also take steps to prepare financially for the long-term.

The comments from Alpha Financial Management come as mortgage lenders across the country are increasingly reacting to the crisis of affordability being faced by prospective first-time buyers, with many offering interest only deals or 110 per cent mortgages.

The firm's director Stephen Lee acknowledged the potential benefits of interest-only mortgages, stating: "For a lot of people, particularly if they're in the formative house-buying years – with student debt and so on – then it might be a short-term option for them.

"But it's certainly not anything that we would encourage unless it was dictated by the market

"A capital and interest method of repayment is far and away the first choice," he added.

According to the Halifax, the average first-time buyer now borrows £117,000 in order to purchase their first home, with the average house now costing just under £200,000.