Here is an example of the difference between a 25 year mortgage term vs a 35 year mortgage term.
The example is based on assuming a 3% interest rate for the lifetime of the loan based on borrowing £200,000.
The advantages of a 25 year term when compared to 35 years are;
✅ You will pay off the debt quicker
✅ Which in turn means you'll pay less interest
Some of the disadvantages of a 25 year term are;
❌ You will make higher monthly repayments compared to a 35 year term
❌ Depending on which bank you apply to, they may be less generous in the amount they are willing to lend to you compared to if you stretch the mortgage over a longer term.
Remember a #mortgage is based on your indidivudual circumstances and deciding if a 25 year or 35 year term suits you best should be a decision you make with professional advice.
We are here to help, so get in touch to discuss by visiting our website, DM.Mortgage (link in the bio)
Our advice is free of charge so please get in touch. It is only when you have found a property and are ready to apply for a mortgage that we charge a fee.
Our typical administration fee is £495 (We charge between £0-£245 for a remortgage). This covers the time involved in dealing with your mortgage application and supporting you through the home buying process from start to finish. This also includes complimentary homebuyers protection insurance, organising any insurances, organising your Will and recommending any professional services such as surveyors, solicitors and conveyancers.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Dunham McCarthy Financial Services Ltd t/a DM Mortgages is an appointed representative of Primis Mortgage Network, a trading name of First Complete Limited which is authorised and regulated by the Financial Conduct Authority.
