25 year vs 35 year mortgage

[teletubies123]

So FTB, just wanted to gauge peoples opinions and I know it's dependent on our individual circumstances so people can't say for certain.

Would you choose a 25 year mortgage and pay £1000pm or take out a 35 year mortgage with a monthly repayment of less than £800 but repay at a 25 year rate? Which would shorten the repayment period.

We are weighing up our options as we are looking to buy soon.

Take what you van now comfortably afford. Guessing that your renewal will come up in a couple of years so you can review your situation then. And you can generally always overpay by 10% per year anyway. In this uncertain climate I'd probably take longer term with option to overpay.

If you got the 35 year mortgage but persistently paid £1000 per month it would be the same (assuming the same interest rate). It gives you the flexibility to pay only £800 if you need to some months though (for which you would of course ultimately pay higher interest ... but it’s a quick and simple way to reduce outgoings if something happens to income which can be worth the cost!).

I would go for the longer term and lower repayments. You can always shorten the term when you come to remortgage. But it does depend on what you can afford now and what expenses you might want to plan for. Ours was initially 35 years and whilst we haven't shortened the term yet we are currently overpaying quite a bit which is a similar effect. Maybe try to get a mortgage that allows you to overpay without incurring a penalty? We chose to do this because we'd planned to have a baby and thought for now disposable cash would be more useful rather than over stretching ourselves whilst having a young family.

35 years but overpay. This will give you some flexibility should you need it.

As a PP has mentioned, I'd check if there is a limit as to how much you can overpay each year.

I would take the longer term and overpay but only if you know you will be disciplined about it.

We’ve always gone for the longest period for the same reason as above: you can just make the agreed payment or you can overpay depending on your current situation.

We’ve always overpaid but we’re quite disciplined with our budget. If you’re likely to fritter money away rather than overpay, then I’d consider a shorter term with a larger monthly sum but make sure you’ve got a rainy day pot in case you’re struggling with repayments due to unforeseen circumstances.

We're FTB too and going for a 30 years mortgage as opposed to the 25 year one for the lower monthly repayments. We're both in jobs that see salary increases regularly so in the future we will over repay and shorten it to 20 years. But for now, we wanted the cheaper monthly repayments especially whilst were spending money on renovations too