25 year vs 30 year mortgage

mbrightman63389

Hi, I am thinking about taking out a 30 year mortgage rather than a 25 year mortgage on our next house purchase. The thinking behind this is to keep the monthly repayments down because we're going to be spending money getting the house to how we want it. The difference is about £60-£70 a month and I was thinking I could always shorten the term a bit later down the line. Any thoughts or advice?

Thank you

kingstreet

Take the longer term and overpay when possible.

You can still pay it off within twenty-five years by doing this.

Thrugelmir

Don't base decisions on interest rates remaining at abnormally low levels for ever. So there's a balance to be struck. If it's not essential expenditure then what's the best use of the money you have. That's the question I would ask myself.

mbrightman63389

Thank you both for your replies

jaxkesa

Sorry if this is a stupid question but...is there any difference in the total cost of a 25 year term and a 30 year term where you overpay each month to what the repayments would be if it was a 25 year term?

Assuming overpayments are permitted that is.

Thrugelmir

jaxkesa wrote: »

Sorry if this is a stupid question but...is there any difference in the total cost of a 25 year term and a 30 year term where you overpay each month to what the repayments would be if it was a 25 year term?

Assuming overpayments are permitted that is.

No there's not. The question is will the overpayments be made religiously. For many people it's the discipline of having to pay the money that matters. Far too easy for money to get frittered away. With the intention of making up the shortfall next month or in the future.