mortgage term and age

ejmolly

Hi

My husband are I have 17 years left on our 25 year mortgage. We are 33 and 35. We are considering putting an offer in on a house we have seen but as its a much bigger mortgage we were thinking of increasing term back up to 25 years.

Does this decrease our chances of application being accepted? Do mortgage lender have a favourable term/age? 25 years would mean we would be 59 and 60 by the time paid off.

Thanks

Thrugelmir

Well within normal retirement age. So no issues age wise.

kingstreet

ejmolly wrote: »

Hi

My husband are I have 17 years left on our 25 year mortgage. We are 33 and 35. We are considering putting an offer in on a house we have seen but as its a much bigger mortgage we were thinking of increasing term back up to 25 years.

Does this decrease our chances of application being accepted? Do mortgage lender have a favourable term/age? 25 years would mean we would be 59 and 60 by the time paid off.

Thanks

If you are tight on income/affordability a longer term makes it more affordable. Pay it off as fast as you can, by making voluntary ovrepayments whenever possible, so you reduce the interest you pay.

Pinklepurr

You should be fine. We moved house last year (age 41) and increased our borrowing. To keep the monthly payment affordable we increased the term up to 25 years. The lender was fine about this.

We set the term at 25 years in order to keep the monthly payments as low as possible, with the plan to overpay on a regular basis. We are just about to make our first overpayment of 5k, but we will keep the monthly payments the same, knocking 2 yrs off the mortgage already!

We hope to be able to do the same in the future, and especially so whilst the interest rates remain low. It was pretty daunting going back up to a 25 year term, but we are focused on reducing this as much as we can.