Mortgage Terms 25 years to 20 years back to 25 years

advice_please_2

Do many people do this?

I am currently coming to the end of a 5 year product on a 25 year mortgage. So in theory would carry on at 20 years.

However do many people go with a new product and choose 25 years again?

Obviously false economy in the short term, but wandered if people do this, either to free up some cash flow (outgoings), increasing additional mortgage etc etc.

JonnieShah

Many people do, as you say, to free up some cash.

If I was in that position, and I was comfortabley able to pay the mortgage and other outgoings during the first 5 years, I'd look at taking on just the 20 years, or maybe less if possible (not likely).

The best way to lok at it is that, you are essentially paying interest on 30 years of mortgage if you decided to take on 25 years in the re-mortgage. Would you want to do this? Be 5 years older when you actually own your house outright? Think about how much more you'd be paying in interest. It would be more than £10,000 most likely. £10,000 is a lot of money, which could just as easily be going into your pension pot.

My two pence. Hope it helps you make your mind up x