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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To think that it's best to have a longer term mortgage and overpay?

29 replies

chatenoire · 24/10/2023 13:39

As opposed to a shorter term one and feel suffocated by the payments

OP posts:
PinkRoses1245 · 24/10/2023 16:47

Yes agree. We just got a 33 year mortgage, we want to be comfortable and have fun money. We won’t live there that long anyway, will downsize probably in 15 years.

chatenoire · 24/10/2023 16:50

MargotMoo · 24/10/2023 16:45

There are obvious benefits to overpaying however people on these threads rarely factor in the time value of money. So overpaying today doesn’t generate the huge financial benefits most overpayment calculators promise, just because money today is worth so much more than money in the future (due to inflation over time). Certainly not worth paying the mortgage early at the expense of a life today.

That's my life philosophy... Some financial decisions have to be based on the life I'm living today and future planning cannot happen at the expense of my current quality of life.

OP posts:
Catza · 24/10/2023 17:00

That's what I've done and payed my mortgage off in just under 10 years. Of course, I also benefited from very low rates and my penalties for early repayment were miniscule (something to the tune of 0.01%). You will need to check the terms when it comes to overpaying before committing to the lender.
It did mean slightly more of penny pinching for a while but I was not militant about it and some months chose to spend money on other things. Given the recent increase in rates, it was absolutely the right decision at the time.

TheUltima · 24/10/2023 17:10

We paid a 35 years mortgage in 12 years by doing this. 35 was the only really affordable option to us at the time, but after a couple of years we both got promotions and put any extra in to the mortgage

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