Owning your own home

You are reading a single comment by @aggi and its replies. Click here to read the full conversation.

•

skidlidsid in reply to @rhowe

Alternatively you can take the view that overpaying is effectively the same as having a shorter mortgage term. With that proviso, you could take the mortgage out with the longest term you can get and then choose to overpay to bring the term down to what you actually would rather have.

Just to dredge up one more old post before I go to bed.

I had a call with my bank today and they wanted to to the affordability calcs using a 40 year term (I'm 26). I balked at the idea of the extra interest and insisted on a 25-year term for the purposes of her spreadsheet, but in theory (if there are no overpayment fees and I'm disciplined about overpaying) are there any downsides to maxing out the term length as a safety net?

•

aggi in reply to @skidlidsid

It's all a bit meaningless, you can overpay and you'll be getting a new one in 2, or 5 years probably. I knocked a year off my mortgage accidentally at one point by giving the wrong number when I was renewing.

•

skidlidsid in reply to @aggi

Easy to say the wrong number, innit? I added an extra £1k to my salary on the phone earlier because it's £x,950 and I usually round it up to £(x+1)k in my head. Ended up saying £(x+1),950 by accident. Didn't catch it until she was reading everything back at the end...

Luckily it didn't affect the outcome... agreement in principle obtained!

About

@aggi started