We get it. It’s an exciting time, you’re buying your first home, planning your furniture and home decor ready for a new chapter in life. Then you ask yourself ‘Am I mortgage-ready?’. Luckily, we’re here to help you with the most important financial decisions you’ll ever make. Our team of experts have multiple years of experience with First Time Buyers and have helped many customers move homes smoothly and efficiently. We’ve been answering your FAQs to help you along in the mean time!
Your mortgage term is known as the length of time it will take for you to repay your mortgage. Usually, the majority of people aim for 25 years, but a lender can start from 1 year, all the way up to 40 years.
The shorter the mortgage term = The quicker you will get your money repaid
The longer the mortgage term = The lower your monthly repayments will be
If you decide to take the long-term route, this means you will pay an increased interest over a longer period of time. So it all boils down to a fine balance and your preference.
Therefore, If you do need a 30-year mortgage term, that’s fine because it will fit your budgets and some lenders allow you to overpay them as well. This means you can always top up your mortgage payments with an overpayment to make sure it is reducing at the same time as say a 25-year term.
If you seek further advice about first-time purchases or any other steps in house buying, then drop us an email email@example.com or give us a call on 01925573328.
Disclaimer: As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.