Mortgage

[SueEllen]

I've been tempted to do that but wouldn't extending a 25 to 30 year mean that, although your monthly repayments are less, you're losing out more in the long run on interest? Or do you care if it gives you a home?

The trick is to get the payments you can afford now, then when you have more equity in the property remortgage to a shorter term. You can over pay randomly to help this especially if you are on a short term fixed rate.

Yes you will pay more interest but it won't be what you would pay if you stuck to the full 30 year term.

[northernladuk]

I've been tempted to do that but wouldn't extending a 25 to 30 year mean that, although your monthly repayments are less, you're losing out more in the long run on interest? Or do you care if it gives you a home?

I remortgage from 4% to less than 2% so mortgage payments were less. I was comfortable with them as they were so reduced duration of the mortgage to get the payments the set as they were.

[SlipTheJab]

I did the opposite if I'd stayed permie I would still have another 15 years to go, as it is I will have it paid off in another 2 years (would already be mortgage free but have spent the best part of 80k over the last 2 years on extending/refurbning).

[PurpleGorilla]

The trick is to get the payments you can afford now, then when you have more equity in the property remortgage to a shorter term. You can over pay randomly to help this especially if you are on a short term fixed rate.

Yes you will pay more interest but it won't be what you would pay if you stuck to the full 30 year term.

The wonders of the London housing bubble. MEW MEW MEW.

[heyya99]

The trick is to get the payments you can afford now, then when you have more equity in the property remortgage to a shorter term. You can over pay randomly to help this especially if you are on a short term fixed rate.

Yes you will pay more interest but it won't be what you would pay if you stuck to the full 30 year term.

Sorry, I don't quite understand this post. Are you saying that after the (for example) 2 year fixed term, then when one remortgages, the amount you are borrowing from the new vendor is less and therefore the monthly payments are less?

[SueEllen]

Sorry, I don't quite understand this post. Are you saying that after the (for example) 2 year fixed term, then when one remortgages, the amount you are borrowing from the new vendor is less and therefore the monthly payments are less?

The answer is it depends on you.

As purplegorilla indicated it's to do with the loan to value (LTV) of your property.

(You should really do your research yourself as all this information is available on sites like Moneysavingexpert and from mortgage brokers. )

Anyway if now you are buying at 90% LTV and have to get a 30 year term to have manageable payments, after 2+ years due to major home improvements, house price increases or a mixture of both when you remortgage your LTV could fall to under 80%. You can then either continue with the longer term at much reduce repayments, change to a much shorter term with the same repayments or change to a shorter term with lower repayments. (This is why it depends on you.)The smaller your LTV the less risk for the mortgage lender so the interest rates are lower.

BTW Purplegorilla a lot of people I know had to do things that were classed as major renovations. So even when house prices stayed static in my area, which they did for a while, when they remortgaged they reduced their LTV.

[PurpleGorilla]

The answer is it depends on you.

As purplegorilla indicated it's to do with the loan to value (LTV) of your property.

(You should really do your research yourself as all this information is available on sites like Moneysavingexpert and from mortgage brokers. )

Anyway if now you are buying at 90% LTV and have to get a 30 year term to have manageable payments, after 2+ years due to major home improvements, house price increases or a mixture of both when you remortgage your LTV could fall to under 80%. You can then either continue with the longer term at much reduce repayments, change to a much shorter term with the same repayments or change to a shorter term with lower repayments. (This is why it depends on you.)The smaller your LTV the less risk for the mortgage lender so the interest rates are lower.

BTW Purplegorilla a lot of people I know had to do things that were classed as major renovations. So even when house prices stayed static in my area, which they did for a while, when they remortgaged they reduced their LTV.

I can feel the sacrifices and hard work from here. Ah the hardship of 2x single income for a 4 bedder in London.

[SueEllen]

I can feel the sacrifices and hard work from here. Ah the hardship of 2x single income for a 4 bedder in London.

Lots of presumptions in your post.

[PurpleGorilla]

Lots of presumptions in your post.

MEW MEW MEW

[Jinnah]

I have been contracting for 9 months and finding it difficult to find a mortgage. Can anyone suggest a solution? I

Contact contractor Mortgages made easy. I just got a mortgage through them. They charge a fee but are very good. Application submitted on Wed survey on Friday approval on Monday.

9 months shouldn't be an issue as long as you have been working and have 1 month left before your contract ends. Also it depends on how much deposit you have.