At what age is a 25 year mortgage too long

hufc2002

As the title states really and in particular at 90% LTV. We are both 32.


Thanks

Thrugelmir

How would you meet the repayments in later life?

hufc2002

Well at the age of 57 I would expect that I would still be working.

student100

Basically 25 years before your planned retirement age. So if you are planning to retire at 65, then 40.

Not that anyone of our generation is likely to be able to actually retire at 65 (or ever, maybe...).

Thrugelmir

hufc2002 wrote: »

Well at the age of 57 I would expect that I would still be working.

What's plan B if your mortgage were to run for longer? For instance you move house.

Health, job insecurity etc all take their toll as the years pass.

hufc2002

I'd like to think that both my wife and I are in secure jobs (NHS and School Teacher).


No plans for a further move as next house would be forever house (need the extra space for growing family).

Thrugelmir

Sounds as if you've answered your own question.

hufc2002

Just wanted other views.

Kynthia

If you're older and have a DB pension with enough already accumulated to mean you would be able to prove you could afford the mortgage after retirement, then I would expect it's not too difficult to have the term going into retirement. However most people would prefer the term to end by 65/6p or earlier.

getmore4less

Mortgage free should be part of the bigger picture financial planning not some arbitrary date.

Having no mortgage payment as kids need funds for uni is an example.

Nick_C

I took out a new mortgage last year at age 57, to be paid off when I'm 75!

I cleared my previous mortgage at age 50.

In reality, if interest rates rise so the cost of the mortgage exceeds my return on investments, I will pay off the mortgage.