At what age is a 25 year mortgage too long

jackieblack

student100 wrote: »

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

I was told last year that I could have a 25 year mortgage if I wanted (I don't) as they could see from my payslips that I am paying into an occupational pension. (I was 47 at the time.)

Jon_B_2

It all depends what you want out of life. We went for a 30 year term (aged 27) as being mortgage free by the age of 60 is a must really.

Ideally with overpayments we could have this achieved by the age of 50, but it's personal.

OrlaAS

Lenders will allow you a mortgage term up till age 75.

You can always take a 25 year term for this mortgage and then when you come to remortgage, reduce the term, increasing your monthly payments.

hufc2002

We took our current (30 year) mortgage out in November 2007 and have been overpaying for the last 3.5 years and if the market was to remain how it is and we carry on overpaying what we are now the mortgage would be paid off by the end of 2027 (10 years early and we would be both mid 40s.)


This seems relatively young to be honest and we need to move to a bigger forever house.


I would approach the new mortgage in exactly the same manner and overpay the maximum I can afford to.


Does this sound sensible?

Nick_C

hufc2002 wrote: »

Does this sound sensible?

Only if your mortgage interest rate is higher than your net interest on savings.

Gunther_Golf

I'm 33 and my partner is 30 - We will shortly be entering into our first mortgage over a 25 year term.

Assuming i am still drawing breath i have little doubt i will be working come 58 (i'd hope a few years would be shaved off the term with overpayments).

It does not concern me in the slightest

chelseablue

We took out a mortgage this year, I was 32 partner is 27


Our term was 34 years, but I overpay most months