Overpayment Thoughts

enthusiasticsaver

Personally I always feel it is better to go for the shorter term whenever possible if you are fairly confident you can meet the normal repayments. The reason that the figures may come out different is possibly something to do with the way interest is calculated. In my experience I have always found it easy to adjust the term either up or down either if you fall on hard times or have a big promotion meaning you want to reduce the term. Best to check if there is a charge for term adjustment though. Overpayments can work but many mortgages won't allow regular ones and if the bank or building society do not charge daily interest it may not have a big impact on the interest paid overall.

steeeb

I'd go for 35 years. Ignore those saying you can adjust the term up or down. You'll need to remortgage and if you're needing to extend the term it's likely because you'll then be in a worse financial position - so therefore you wouldn't be able to remortgage.

The 35 year overpaying to 25 years and the 25 year term mortgage will be paid off at the same time (although there may be some negligible interest difference due to how the bank may calculate it).

Most banks will allow you to adjust your monthly payment. Just be aware of any ERCs within your fixed periods, although this generally won't be an issue it's not like you'll be overpaying thousands at a time.

It's good practice to have a savings buffer and then overpay what you can - if you can't get a higher savings rate anywhere else or have no credit cards or other debts to pay off.

Hope this helps.