Mortgage Term - 25 or 30?

lion-o

I'm looking at either a 25 year or 30 year mortgage.

The mortgage allows overpayments of 10% of the purchase price per annum.

I was thinking of getting a 30 year mortgage to make the monthly payments lower and overpay each month so the mortgage finishes within 25 years. This is doable within the 10% overpayment terms of the mortgage.

This would then give me a bit of breathing space each month if the car broke down etc. and I could then skip my overpayment that month without defaulting on a mortgage.

Do you think this is a wise idea? I can afford the 25 year mortgage monthly payments but it seems like a good idea to just go the overpayment route.

Thanks

kellyt86

Sounds like a good plan to go for a 30 year term on that basis,

As you say gives flexibility if circumstances change, unexpected cost and if interest rates go up.

This is what we've done!

Ps this is obv on proviso that your age doesn't prevent you from getting a 30 yr mortgage.

lion-o

Thanks for your reply. I'm 27 so everything is fine for the term length.