What about a 25 year mortgage?

A 25 year mortgage is especially popular with first time buyers. The main reason being the longer the term of mortgage, the lower the monthly repayments will be. You must take care that the term does not extend into your retirement though, as you will find it difficult to keep up with repayments. Alternatively why not think about a shorter-term mortgage that saves you interest and frees you from your mortgage earlier. If you already have a mortgage with a set term, you can ask to shorten it. Before doing so find out how much it would add to your monthly repayments, and remember that your interest rates could rise. If you are unsure about whether to Commit to a higher repayment mortgage, why not consider making a few over payments, which has the same effect of saving you interest and reducing your mortgage term.

Before making any decisions question the lender regarding a 25 year mortgage term, such as: -

1. What are my monthly repayments with different terms?
2. What is the total amount payable with different terms?
3. What term do you recommend?
4. Do you charge a fee to change the term length?