Repayment mortgages - how many years/what age at full term?

the_flying_pig

Tiny sample obviously but I wondered what age people on here expect to be when their mortgage is fully paid off, e.g. if we're talking a 30 yr old taking out a 25 yr mortgage it'll be paid off at age 55.


Thanks

boatman

Whatever age you fancy retiring is probably a good start.

SilasMarner

That's an interesting "cor blimey" question. What me? Moved for the 5th time at the age of 44 years old and, as a mathematical genius, I was able to add 44 and 25 together, but didn't give it a second thought... and now drip drip drip drip.....will it ever be repaid?

steampowered

Personally, I intend to keep my mortgage as high as possible while interest rates remain so low. That would mean not repaying in full until I retire.

I am paying about 2% on my mortgage and can very easily make more than that from a balanced portfolio of stock market investments (especially when investing through a stocks and shares ISA to reduce tax).

However, if interest rates increase, I would consider selling my other investments to pay off the mortgage much sooner. Personally I could pay off my mortgage before I am 40 if I sold my other investments and started overpaying.

the_flying_pig

SilasMarner wrote: »

That's an interesting "cor blimey" question. What me? Moved for the 5th time at the age of 44 years old and, as a mathematical genius, I was able to add 44 and 25 together, but didn't give it a second thought... and now drip drip drip drip.....will it ever be repaid?

right.


my personal situation is that I'm 40 yrs old, won't ever upscale my house now [career has plateaued, live in London so even minor upgrade are ruinously expensive].


took out a 20 yr repayment mortgage at c. 37, so c 17 yrs left, would have been paid off at 58, I'm now due to remortgage and considering extending it a little, so another 25 yrs taking me to 65, in order to free up some extra money every month. wondering how common this sort of thing is.


the mortgage is fairly piffling in LTV terms [less than 25%] but in absolute terms it's not trivial, needs an average salary to comfortably service the interest and a highish one to make repayments.

agrinnall

My most recent mortgage was a 20 year term taken out in 2004 when I was 46, paid off in 2010 and I am now mortgage free.

pinkteapot

We always take ours out for the longest term the bank will allow - taking us to state retirement age. However, we have no intention of keeping the mortgage that long and overpay as much as we can. We take it out over the longest term possible to make the 'minimum' payment each month as low as possible, to help in the event of job loss, illness, etc.

the_flying_pig

pinkteapot wrote: »

We always take ours out for the longest term the bank will allow - taking us to state retirement age. However, we have no intention of keeping the mortgage that long and overpay as much as we can. We take it out over the longest term possible to make the 'minimum' payment each month as low as possible, to help in the event of job loss, illness, etc.

I think that's pretty much where I'm at. Especially useful for us because my wife is a really huge worrier and really values the 'security' that goes with, at least theoretically, being able to walk away from her job tomorrow. A very long term will no doubt mean that we'll end up paying a bit more interest, and all being well we'll end up overpaying at least a little at the earliest opportunity, but it'd be difficult to put a value [primarily to the wife] on the peace of mind from not 'having' make really heavy repayments.

pinkteapot

It's a strategy that works if you've got the discipline to overpay. So long as we overpay, we won't pay more in interest than we would have by having a shorter term in the first place, but we've got flexibility.

Of course, we are fortunate enough that we had the option - ie the amount we borrowed was affordable at shorter terms so we were able to opt for a longer term. With house prices as high as they are, I imagine a lot of people have to take a really long term to get past affordability checks.

Fuzzyness

i'll be 57 on current repayment schedule. although anticipate that wage increases and decrease in outstanding balance will allow me to pay more off over a shorted term. thats the theory at least.

NicNicP

We took out our first mortgage for 25 years which will mean I am 48 when we're mortgage free. If we hadn't moved earlier this year we would've been in a position to pay it off although chose to keep low payments and not pay any early repayment charges. When we moved we chose to keep the same term as the payments are still affordable with the option to overpay.