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

the_flying_pig

pinkteapot wrote: »

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.

yeah, we're in a fortunate position to some extent, would breeze through affordability checks because my wife's current salary is high, for as long as she's doing it even something like a 5-year term would be very affordable, but the job is so stressful and difficult [for her] that we'd like maximum flexibility.


Going forward she'll be earning somewhere in the range of 25-100% of current levels but it's really hard to predict exactly where within this huge range. At the bottom end of the range we'd absolutely need the longer term. Anywhere near the top, even top half of it, and we'd be semi-uselessly piling up cash every month, but it's a price worth paying & we're reasonably disciplined in terms of not just frittering spare cash.

glasgowdan

Overpay overpay overpay. We took out our last mortgage at 28 years old and paid it off by 33, even though it was a 25 year term. We have just taken our next mortgage, age 35 and forecast to pay it off by 43. Living well within our means. The feeling of paying it off at last is great and I want that again so I can cut my hours more and be more present for my young family. If only council tax and heating bills were likely to one day end!

Rosemary7391

I took a 40 year mortgage so set to be paid off at 63 although I am overpaying. I'll be moving shortly though, no idea where. If I ever manage to move nearer my friends and further from my neighbours (I don't want much - just not literally on top of them!) I'll probably have to take as long as they'll allow, being single and having friends in London

worried_jim

12 years to go which will take me to 54. Will be driving a Porsche at 55, I've already chosen the model and colour.

Alarae

House at 22, term over 30 years, so will be 57. Had to be a longer term to enable affordability as my wage is low at the moment as I am in a trainee role. In two years I will be fully qualified and my salary will jump so will overpay then, or potentially sell up and move.

katejo

the_flying_pig wrote: »

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

I took out my current mortgage in 2006 when I was nearly 43. The lender only allowed me to have a 22 year term because they then blocked mortgages post age 65. In effect I have been doing overpayments from the beginning. I still have 11 years left but will have paid it off in about 6-7 years from now.

hazyjo

I have moved 7 times and pretty much taken out a 25 year mortgage (except now I'm too old LOL - last one was 23 years I think).


BUT... I am moving next year and using a lot of my equity to pay off most, if not all, of my mortgage. Most I'll have is £30k-35k.


I've never overpaid it. I've always nearly maxed out. Most of my friends who took out mortgages decades ago have always added more onto them, even if they've not moved. My sister has been in her house for around 20 years and yet they still have £100k or so on the mortgage as they've borrowed on it over the years - loft conversion, driveway, home improvements and the like.


You never know what's round the corner really, or what options might come you way...


Jx

G_M

Mortgage?

What mortgage?

amateur_house

I took out my first mortgage at 27 and paid it off 22 years later at the age of 49. I am moving house again and taking on another mortgage over the longest term possible taking me up to 67 (state retirement age) to keep they payments as low as possible. Ideally I would like to make overpayments have it paid off in 10 years.

ThePants999

Hoping we're in our forever home now. If so, I'll be mortgage free at 55.