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Experian: Mortgage costs are 'severely underestimated'

6 June 2014 Last updated at 12:27 BST

Homebuyers are "severely overestimating" their ability to repay their mortgage, according to Experian.

The information services firm claimed many homebuyers were "unrealistic" about the costs and would struggle if interest rates were to rise.

Based on research among 1,500 Britons looking to buy a home, homebuyers aimed for properties worth an average of £235,000.

The company's Head of Consumer Affairs, James Jones, told BBC Radio 5 live's Adam Parsons: "Many people are in for a rude awakening".

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