Mortgage help for first time buyer

RaulSim

I received a mortgage recommendation (not sure on correct term but it was just a proposal) from my broker, who is a small broker recommended by the estate agent. 
I know people suggest checking other brokers, which I did, but upon first glance this small broker had the best price. However, when I told them I was happy with the price and got the illustration back, I noticed it was over a term of 35 years, as oppose to the standard 25. (I am referring to the monthly repayment price, not the overall price).
If they had mentioned this when putting forward their recommendation, I would have then been able to make a better comparison with other brokers, because when I was running recommendations with other brokers, I done it for only 25 years, so of course the price would be more as opposed to  a 35 year quote.
I understand it's my duty to ask these questions, but as a first timer, I think it just slipped by me and I think the broker possibly knew this. Nonetheless:

1. How would I be able to work out if a 35 year term is better for me against a 25 year?
2. I am new to this and don't understand some of the terms used when obtaining a mortgage. For example, if I wanted to 'remortgage' after the initial 2/3 year deal (where you normally pay less) which is given on mortgage offers, can I do so or do I have to stay for a certain amount of time? Could I also remortgage and shorten the term to 25 years at this point also if desired?  

Please understand this is all new to me so apologies for asking such basic questions.
Thanks

Hannimal

What do you mean by price? Do you mean minimum payment per month? It would be very unusual for the cost of a 35 year mortgage to be less than 25 year mortgage. 

1. How would I be able to work out if a 35 year term is better for me against a 25 year?
Look at what the interest rate is. This is what actually matters. Usually there is nothing stopping you from making overpayments up to 10% of your mortgage value (but do read your terms and conditions) - so you may well overpay to shorten the term of your 35 year mortgage. 

2. I am new to this and don't understand some of the terms used when obtaining a mortgage. For example, if I wanted to 'remortgage' after the initial 2/3 year deal (where you normally pay less) which is given on mortgage offers, can I do so or do I have to stay for a certain amount of time? Could I also remortgage and shorten the term to 25 years at this point also if desired?  
You can either move to a new deal with current lender or remortgage. I suggest after 2-3 years remortgaging might be more hassle than it is worth due to cost. You need to read up on this when the time comes but yes, if you remortgage you can change all the terms.

3. I haven't received any contract, just a declaration to sign and an illustration form - in the unlikely event I did want to completely back out at this point and switch, is it possible? Also as this stage does anyone know if any credit checks are done?
Speak with your mortgage advisor after reading the paperwork. How on earth is someone on a forum meant to know what you have are signing?

MaryNB

You might be better off posting in the Mortgages & Endowments section. There are a few brokers there.

Regarding the term. If you can afford a shorter terms its always better because you'll pay less interest. Have a look at the monthly repayments, all the bills you'll need to pay in the new property, what you want to put into savings each month and what you want left over as disposable income. Your monthly repayment should be what you are comfortable paying each month. People generally suggest maybe 30%-40% of your income going on your mortgage repayments but this will obviously vary depending on how risk averse you are, if you have dependents, other loans, want plenty of money to go on holidays, nights out etc. If a 25 year mortgage means you'll be eating beans on toast every night you might want to go with 30 years. If you keep your term long with low repayments a lot of lenders will allow you to over pay by 10% of the balance at the start of each year so there some flexibility. 

Hannimal

Just a penny: I am on a 35-year term and in my first few months of living here I've noticed a lot of things that need doing that I wasn't anticipating. I was meaning to overpay each month but now I think I'll start overpaying on my 3rd year and until then I'll save and spend extra on home improvements so I actually enjoy living here. A longer term gives you that flexibility.