We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Bad mortgage advice?
Options
Mcglol
Posts: 1 Newbie
Hi, just after afew answers to some questions that have been on my mind recently. Me and my wife are looking to buy soon.
1) we've been told that going with 35year mortgage then switching back to a 25year mortgage is a popular 'strategy', can anyone shed some light on this?
2) it's better to get the biggest mortgage the banks will give you
Is this bad advice or is this elements of truth to these?
1) we've been told that going with 35year mortgage then switching back to a 25year mortgage is a popular 'strategy', can anyone shed some light on this?
2) it's better to get the biggest mortgage the banks will give you
Is this bad advice or is this elements of truth to these?
0
Comments
-
I'd say going for a longer term and making voluntary overpayments will shorten the term just as well as a shorter contractual term but without the pain of the higher payments being constant.
You get as big a mortgage as you need to purchase the property you are buying.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hi, just after afew answers to some questions that have been on my mind recently. Me and my wife are looking to buy soon.
1) we've been told that going with 35year mortgage then switching back to a 25year mortgage is a popular 'strategy', can anyone shed some light on this?
2) it's better to get the biggest mortgage the banks will give you
Is this bad advice or is this elements of truth to these?
1 - no idea, I guess so you can borrow more.
2 - I'd say no, get the amount you need for the house you need (I think this means buy the biggest house you can get) - I could afford more, but love the house I'm trying to buy (yeah I know) so I get to put down a bigger deposit with a shorter term. I think that gives me slightly more security and I can overpay and be mortgage free earlier. Why get the biggest - it's not always better and what happens if interest rates go up or you lose your job?0 -
1) we've been told that going with 35year mortgage then switching back to a 25year mortgage is a popular 'strategy', can anyone shed some light on this?
Going for a longer term but making overpayments to bring the time down is certainly viable and common enough. No point making you mandatory minimum payment so high that it could be a struggle when rates rise.2) it's better to get the biggest mortgage the banks will give you
Its better to get the mortgage you need and is affordable using sensible interest rates that you will almost certainly have to pay at some point in the mortgage.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Do you want to have a life and do `stuff` or what to be saddled with massive mortgage payments.
What fits in your life and what do you want from life?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards