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Dilemma: 17 year mortgage to enable higher pension contributions or 10 years and meagre pension?
RomanHoliday2015
Posts: 10 Forumite
Hello there,
I am in the unusual situation of being a first-time buyer aged 51 and am in a quandary: my dad is very anti-mortgage (stung in the 90’s by mortgage hike to 15%) and is advising I take out as short a term as possible. However, I favour 17 year terms - around 1.14% - giving me leeway to fatten up my pension with additional monthly payments. I do not qualify for a state pension (15years short!) and have a meagre pension pot... which needs attention.
I am looking at a 2/3 bed terrace around £295/- in a very popular area and would need 20-30% LTV ...
The economy and C19 is unnerving so I’m also wondering if I should err on the side of caution and opt for a more modest property, so that I could be mortgage free ...
Apologies, a lot to chew on there.
Any advice much appreciated.
I am in the unusual situation of being a first-time buyer aged 51 and am in a quandary: my dad is very anti-mortgage (stung in the 90’s by mortgage hike to 15%) and is advising I take out as short a term as possible. However, I favour 17 year terms - around 1.14% - giving me leeway to fatten up my pension with additional monthly payments. I do not qualify for a state pension (15years short!) and have a meagre pension pot... which needs attention.
I am looking at a 2/3 bed terrace around £295/- in a very popular area and would need 20-30% LTV ...
The economy and C19 is unnerving so I’m also wondering if I should err on the side of caution and opt for a more modest property, so that I could be mortgage free ...
Apologies, a lot to chew on there.
Any advice much appreciated.
0
Comments
-
Longer mortgage term as possible.
You can always make overpayments to bring the term down.
Pay into your pension as you need an income on retirement.
Ignore your dad (sorry!)Mortgage started 2020, aiming to clear 31/12/2029.1
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