30 Year Mortgages

Redbedhead

Does anyone know what the maximum age is that they will still offer you a 30 year mortgage at?

And is there anywhere on the net I can find a calculator that will tell me what the total interest paid over the 30 years is and can then compare to 25 years?

Thanks

tomstickland

I've just done a quick calculation using my overpayment calculator
https://www.tomstickland.co.uk/mse/mortgage_overpayment.xls

This is a table of total paid back divided by the initial loan.
So 2.0 means you pay back twice what was borrowed etc.

Interest rate / 25 years / 30 years
4% / 1.58 /1.72
5% / 1.75 / 1.93
6% / 1.93 / 2.16
7% / 2.12 / 2.4

MortgageMamma

There is not a max age, some lenders will only lend to 65, some well into retirement and some will lend right up to 90 (scandalous!)

Redbedhead

MortgageMamma wrote: »

There is not a max age, some lenders will only lend to 65, some well into retirement and some will lend right up to 90 (scandalous!)

That is shocking. I was wondering if I would be ok getting a 30 year mortgage now at 32:rotfl:

herbiesjp

Redbedhead wrote: »

That is shocking. I was wondering if I would be ok getting a 30 year mortgage now at 32:rotfl:

You have no worries on that front

Redbedhead

tomstickland wrote: »

I've just done a quick calculation using my overpayment calculator
https://www.tomstickland.co.uk/mse/mortgage_overpayment.xls

This is a table of total paid back divided by the initial loan.
So 2.0 means you pay back twice what was borrowed etc.

Interest rate / 25 years / 30 years
4% / 1.58 /1.72
5% / 1.75 / 1.93
6% / 1.93 / 2.16
7% / 2.12 / 2.4

Thanks, that is really helpful. Quite a big difference really!

Redbedhead

herbiesjp wrote: »

You have no worries on that front

That is good to know - the question is, do I want a 30 year mortgage:eek:

herbiesjp

There is nothing to stop you from starting on 30 years, and the either making overpayments to reduce the term, or reduce the term when you come to re-mortgage

The 30 years is not set in stone

HTH

Redbedhead

herbiesjp wrote: »

There is nothing to stop you from starting on 30 years, and the either making overpayments to reduce the term, or reduce the term when you come to re-mortgage

The 30 years is not set in stone

HTH

That would be my plan tbh. The mortgage we have now, I have overpaid varying amounts for the past few years. I think the 30 year mortgage would give us a bit more flexibility if we want children etc.

kingkano

Exactly. 30yrs isnt the end of. Overpay and reduce the term manually is a great option.

Extending the term initially has got to be a better option that taking part of the mortgage as Interest Only. Something I see alot of my friends doing around me. I'd rather know, even if it takes me the 30yrs, I will eventually pay it all off even if I dont manage overpayments etc.....

Redbedhead

kingkano wrote: »

Exactly. 30yrs isnt the end of. Overpay and reduce the term manually is a great option.

Extending the term initially has got to be a better option that taking part of the mortgage as Interest Only. Something I see alot of my friends doing around me. I'd rather know, even if it takes me the 30yrs, I will eventually pay it all off even if I dont manage overpayments etc.....

I have no intention of doing interest only. I think unless you have a suitable savings vehicle sitting next to the mortgage (which lots don't have) you may as well rent.

House prices are going up so quickly around here we are pretty much going to have to spend more than we wanted to get the type of house we want. As we are planning to be in the house for a good ten years or so, I don't mind going a bit higher in terms of price, but need to ensure the mortgage is affordable for all eventualities - including maternity pay (which will hit us hard) and the cash drain that are children:rotfl:

Thnaks - has helped me get it clear in my head.