Longer-term mortgages

[miniman]

I'm thinking 30, 35, 40 year terms. Would be nice to move out to the country and this could be the way to do it. Aside of the obvious (significant) increase in interest payments over the term, anyone got any experience of this nature of borrowing? And any ideas as to who offers it? C&G don't seem to.

[Plotloss]

One of 'er indoors mates got offered a 5x mortgage over 50 years. I think this was Northern Rock, not sure though.

Minimax is your man...

[miniman]

Plotloss said:

Minimax is your man...

Yup, kind of hoping he'll show up soon! Perhaps I should have stuck this in the Mini forum seeing as so far it's you and me waiting for Tom to come along...

>> Edited by miniman on Thursday 10th March 13:16

[b17nns]

we've gone up to 30 years this time.

we overpay at the moment so if all goes to plan it will finish in about 22 years but if the worst comes to the worst we can cut back to the normal more affordable payment.

gives you some extra flexibility.

[maxrider]

Alliance & Leicester gave me a 30 year mortgage

[maxf]

I was thinking along the lines of a 35 year mortgage - to be honest its the only way I'll be able to afford anything remotely nice.

I also thought about getting French citizenship and getting a mortgage over there - lower house prices and interest free mortgages for 10 years available for first time buyers! Can't speak french though

[miniman]

maxrider said:

Alliance & Leicester gave me a 30 year mortgage

The A&L site does have a good calculator which shows the relative costs of 30 years vs 40 years and it make for scary reading.

Borrowing £200,000, 5 year fixed rate

Over 30 years: £1060 / month - total cost £381,600
Over 40 years: £950 / month - total cost £456,000

Obviously figures are vague because the interest and thus monthly payments will vary after year 5, but the extra £110 / month over 30 years (£39,600) saves nearly £75k