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

JP08

1st mortgage was taken out in 1992, 25 year term. Overpaid, paid off in 2002 (bar an interest free pittance that meant the Halifax looked after my deeds).

Life happened. Met someone, moved in together, bigger house. So new mortgage at the age of 42 for 23 years (ie up to retirement age). This was a 2 year fixed. The term was that long as I hadn't sold the house I'd bought in 1992 to pay for the new one, and was unsure whether to rent or sell.

Remortgaged at the end of the fix, for a much lower amount - having sold the earlier house in the interim. New mortgage was a 5 year fix in 2012 over 10 year term - kept the payments broadly the same. Been overpaying that to the max for the last three years, and saving a lump sum to cover the balance once the fix ends.

We're on schedule to clear the mortgage in 350ish days time*. I don't intend to have another one.

*Though if certain events pan out at work and a decent VS payment comes out of it, this may be shorter (hang the early repayment fees), and this house will be for sale.

moneyistooshorttomention

I no longer have a mortgage.

PLAN WAS;
- Buy starter house in early 20s
- Move to semi-detached in early 30s at latest
- Move to detached in 40s
and, all along using any spare cash to repay mortgage

My sights were set on being mortgage-free by 50 at the latest (as that's the early retirement age - well it was.......:cool:) and I believe people should be financially straight by then in case that's "how the cookie crumbles" (whether by choice or being imposed courtesy of redundancy).

WHAT ACTUALLY HAPPENED (rather different - as I was much worse off from being single all along)

- Starter house in early 30s.
- Stuck there until early 60s and retirement - when I had to move across country to get the detached house.

I still stuck to repaying mortgage capital when I realistically had the chance. The mortgage was the standard 25 year term and was due to be paid off just in time (ie just before I hit my retirement age of 60). I was unable to pay it off via increasing monthly payments (as I was poorly paid and having to cover all the bills etc on my own being single). But I took the view of keeping my eyes open for any chance I got of getting reasonable size lump sums as an addition to my income and would always put them straight towards paying off mortgage capital.

In the event the mortgage was paid off in my 40s. My financial circumstances (and the age restriction imposed by lenders meaning they wouldnt give me a 25 year term again) were such that I wasn't able to "move up the ladder" at that point.

I know what you mean by wife feeling more secure if the mortgage is paid off - or at the least minimised. That was how I felt. I guess it was probably based on paying off some mortgage when possible was what I'd seen my mother doing - as she needed to feel secure that "whatever happened at least her home was safe" and I felt very much the same (in my case because of being very conscious I was the only one having to pay for absolutely everything and knowing my job situation wasn't as secure as I'd planned on).

To me - that's a major factor - knowing employers know there is only so much pressure they can put on you - because you've "secured your position" financially as much as you possibly can. Once it was paid off I did very much feel "Na na na employers - whatever you do - you can't take my home off me - its's safe:D". I did feel in a much better position to stand up to anything unreasonable and cope if they had taken my job off me.

System

I'm hoping to buy in early 2018 when I'll be 31. Plan is to get the longest possible mortgage term to take me to state retirement age, then overpay like mad to hopefully have it paid off by the time I'm 50.

jimmy_cricket

First house (starter flat) bought mid 80s. Two further moves since then. Worked hard at over paying by forgoing luxuries such as new cars and fancy holidays. Paid mortgage off just as interest rates crashed, mid 2000s.

Have been mortgage free since then. The house is too small really but is in London and I sure don't want to take on a massive mortgage to gain a little more room. Much rather be free of debt. The sense of freedom is amazing

TheShape

Originally had shared mortgage with my father running to 2023. When he died last year I remortgaged for a 30 year term to 2045, primarily to hedge against falls in income by keeping repayments low. Had intended to overpay but with mortgage interest at 1.74% I'm better of putting my money in savings than overpaying.

I'll be 67 at full term.

chickenmama

Going through the purchase of a new property and as it is more expensive than our current home we are adding 4.5 years onto the mortgage so will be paying it off in 12 years time when I will be 44 (all being well).

pollyanna24

Bought my house when I was 25 with a 35 year mortgage.

Since then, various things have happened. And various people have owned my house. First me with my ex until 2011, then me with my brother till 2016. And now just me!

To buy my brother out, I had to borrow more and extend my first mortgage to a 40 year one, so will be paid off in 30 years time when I am 65 (and 1 day!).

The second mortgage for some reason they wouldn't run till the same time, so I had to take out a 28 year mortgage, so will be 63 (they came up with the term due to their fancy computer saying how much I could afford and for how long and wouldn't extend the term past 28 years).

I do overpay on the first mortgage when I can and going by my estimates, if I stick at the monthly payment as it is now, it will be paid off 2 years early because of the overpayments I have made. I will make another overpayment in the New Year as when you overpay by £500, the monthly amount goes down and my initial reason for overpaying is to make the monthly payment lower to make the whole idea of owning a house "feel" more affordable!

hannahbond37

First mortgage at 19 was for 35 years so would have been 54, just got a new mortgage for moving for 29 years so will be 51! Hopefully we don't have to take out a bigger mortgage and then delay being mortgage free