Thicko mortgage question. Is it better to...

[Tinker]

...take out a mortgage over 25 years and pay more into it than minimum monthly payment or take out mortgage over shorter term?

I suspect longer term because gives more flexibility if/when interest rates go up. But, I'd be 66 at the end of the term!

"Better" means cheaper btw. Or does it?

You pay less interest overall on a shorter term.
Wouldn't you?
Can't you ask an IFA?

take out one that lets you pay off quicker or not dependent on circumstances .. though not the offset ones ..look for a better rate

you probably won't keep the same mortgage for life anyway so you can always shorten it later if you want it in writing

depends how many years you cost it over .. the average mortgage is held for 5 years I think

Some on line sites have a mortgage calculator thingummywotsit. (Yorkshire Building Society's one is good)

I would go with whichever has the lowest rates and lets you be most flexible.

We have the abbey flexible one - and it is amazingly flexible - you can pay money back in whenever you like, and withdraw it again later (great for us - big building project - don't want all the money in one go).

it depends on whether your lender charges daily or annual interest. If its daily interest, then you get credited same month for any overpayments, if its annual, your overpayments only affect your interest due once a year. Taking a longer term means that if interest rates do go up, your actual commitment is lower. Many lenders won't let you set the term beyond your reasonable retirment age, given the uncertainty over future pension incomes. I'd be tempted to go for say a 20 year term, and fix your payments so you know that they won't go up during the set term. Make sure you don't have an overhang, or penalty for redemption/repayment after the fixed rate term is up. Many fixed rates allow you to overpay on your monthly payments, generally up to 20% of your monthly cost. hth.

Lots of help everyone, thanks. Although I'll be 66, partner would only be 59. I'm thinking of lower monthly payments for first few years since now have childcare costs as well. Need to borrow a lot in order to just get a bit more space so, although would much prefer a shorter term (only 12 years left on my mortgage now), a 25 year term does cut monthly repayment costs.

usually there are only penalties for repayment in the first few years - after that the length of the mortgage is usually irrelevant because you can pay off lump sums without penalties.

But make sure you ask about that specifically.