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What's better: a large mortgage or a smaller mortgage with overpayments?

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PaulAA_2 Posts: 56 Forumite

27 August 2015 at 8:21AM in Mortgage-free wannabe

Dear mortgage experts,

Consider two scenarios under which I pay out the same amount every month to the bank:
(a) I have a large repayment mortgage and unable to make additional overpayments. This means I will be able to own a bigger house in 30 years time.
(b) I have a lot smaller mortgage. I am able to make additional overpayments (assume penalties or no penalties). The monthly outgoing is still the same, but I will be able to own the smaller house in let's say 10 years time.

Would the accumulated equity under scenario (a) be greater or smaller than the value of the smaller house at this time?

This discussion has been closed.

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What's better: a large mortgage or a smaller mortgage with overpayments?

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