New Mortgage Application - Duration of Mortgage Query

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mrheisenberg

Registered User
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Hi All,

This forum is so helpful but something I haven't been able to find is what duration of mortgage one should apply for.

I am 33 and my partner is 29 and we are getting mortgage for self build.

Using the banks online repayment calculators we could afford to repay the mortgage repayments on a mortgage term of 22 years.

Should we go for this length and if we do would it be hard to restructure in the future should circumstances change?

Or if we went for say a 27 year term and overpaid each month would this be the same thing?

Thanks in advance for your help.
 
I would pick the longest term for now.

Your first year or two of a mortgage is always the toughest as there's so much to pay out for.

After that, and as things improve, you can start to overpay.

If you can, consider letting a room share for a year or two.

Its tax free & wfh is here to stay so even if your location is not an urban one, as long as you have BB you'll be good.
 
As above, go for the longest and shorten with overpayments when you can, gives more flexibility.
 
We took over the longest period we could and said we would save extra and either pay off more or just keep it as a rainy day fund.

Also the payments would be much more affordable if down the line something happened to one of our jobs, we had another child etc.
 
Take the longest term, you can always overpay but it gives you more flexibility. Only difference is cost of life cover for mortgage will be slightly higher the longer the term but depending on your circumstances that could only be a pittance.
 
While I agree with the advice above in theory, be wary of the risk in practice that you will get used to the lower monthly repayment, your household spending will expand to absorb the additional cash available every month and you won't get around to overpaying to reduce the term later. You probably know yourselves well - how disciplined are you?
 
I agree in theory and probably in practice as well.

But as the lowest rates are fixed rates, then it may be difficult to take out a 27 year mortgage but pay it over 22 years.

mrheisenberg said:
Using the banks online repayment calculators we could afford to repay the mortgage repayments on a mortgage term of 22 years.
Click to expand...

Again, there is no hurry to pay it off over 22 years. So go for the comfortable 27.

Brendan
 
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