Length of Mortgage

Kavanne

Right I will be 20 when I attempt to get on the property ladder.. does this mean I can get a longer mortgage? (say.. 40 years?) or will I still only be offered the standard 25 year length?

Also.. what's a good percentage to enter on a mortgage calculator? I've been using 7.5%.

Thanks for any help you can provide!

Also, together my fiance and I can realistically afford mortgage payments of £13000 a year.

Kavanne

I am very disappointed! MSE has always helped me in the past.. come on guys!

Gorgeous_George

You can get an indefinite mortgage with interest only. Well, you might have to repay it after 25, 30, 35 years or so but you can do that with another mortgage.

You should be looking to pay it off sooner though, but personally, I wouldn't sacrifice my lifestyle to do so. Right now, I'd save for a few years and see what happens to house prices.

Good luck.

GG

daveyjp

Get some figures on monthly repayments differences between a 25 and 40 year mortgage - you may be surprised how little you save every month, but see how much the total amount repayable is on a 40 year term and you may fall off your chair!

Kavanne

Is 7.5% a good rate to be putting in the calculators or am I underestimating?

danm

today i'd use 5.5%, 7.5% next week possibly .....

go for 6% and you'll be good

Kavanne

Looks like I can easily afford a £180000 mortgage over 25 years atm, but that is right at the top of our budget.. if interest rates went up anymore, we'd be done for!

We won't be buying til at least Feb next year though, so hopefully all this interest rate rising will be done by then and it will have plateaued?

danm

you should be earning 50K-60K jointly to take this size of loan IMO

personally, i'd guess at rates being at 5.75%/6% in feb.

Gorgeous_George

Fear not. If IRs rise hous prices will fall. You need to buy near the top of the rates when prices bottom out. Feb 2008 and things will look different.

GG

danm

yep, rates go up and house prices fall.

err, except for the last two years

Kavanne

Gorgeous_George wrote: »

Fear not. If IRs rise hous prices will fall. You need to buy near the top of the rates when prices bottom out. Feb 2008 and things will look different.

GG

As long as 'different' = cheaper/better, then I am happy We have a window between Feb 2008 - Jul 2008 in which to buy.